For architects and property developers, conducting a title search on a property is critical when buying, selling, or refinancing. Running a title search means accessing public records that detail the ownership of a property, ensuring there are no discrepancies, and you are dealing with the correct seller and property. There is various additional information contained in a property title which can potentially affect any proposed development projects. So, what happens if a title search reveals a problem with the property title? Let’s discuss it.
What Information and Potential Problems Will a Title Search Reveal?
More than revealing the correct owner or owners of the property and the type of ownership, a title search will give you various other critical information. There are multiple ways to carry out a title search, but with Archistar, title searches are easy and are just one of the many powerful features essential to property developers that the platform offers.
Ownership and Tenants
You’ll be able to find out whether there are joint tenants or tenants in common. Tenants in common will individually own a portion of the land and be able to sell their piece of the land. If the land has joint tenants, they own the property as one unit and can leave it to the other joint tenant if they pass away.
- If joint tenants own the property, both parties must agree to sell the property, which could pose a problem.
- If the property has tenants in common, the portion for sale may not be suitable for development based on its size and structure.
Building Conventions or Covenants
Covenants are defined in the property title. These may be restrictions on what can be built, what materials can be used, restrictions on the number of buildings, colour schemes, or driveway size. Property developers may create these rules to preserve the aesthetic appeal of the property or neighbourhood.
- Covenants may restrict the type of developments allowed on the property, potentially barring you from your intended usage.
Nonowner Property Rights or Easements
The title information will reveal easements on the property. An easement gives property rights to a nonowner for a specific purpose. They typically come in the form of service access, allowing access to electrical, sewerage, or water infrastructure or access to a road.
- Easements can result in limitations in how the property is developed. Though they can be altered or removed, this could delay development.
Legal Notices or Caveats
A caveat is a legal notice that states whether someone else has a legally recognised interest in the property and a potential claim to part of or all of the property. If a caveat is lodged against a property, its owner may be unable to sell or transfer it until it is withdrawn, lapsed, or cancelled. For example, a builder may put a caveat on a property if the owner still owes them money.
- Caveats signal that there will be legal issues that need to be dealt with before processing the sale and developing the property.
- Caveats could even prevent the sale altogether, resulting in wasted time and money spent on legal fees.
What To Do if There Are Problems with the Property
If you have concerns with the property title, there are various actions you can take to avoid potential legal or financial repercussions. First, you would consult with a property lawyer. They can assist in further investigating caveats, covenants, easements, or zoning violations. You will need to know in detail how these matters affect your project plans, how to work around them or address them legally. If zoning violations are present, you must understand the extent of the breaches by reviewing local laws, permits, and regulations.
Based on the violations or restrictions, you can negotiate with the seller to rectify the problems or violations or reassess the purchase price. You may be able to cancel certain caveats and apply for zoning permits through the local council or government agency.
Does a Title Search Uncover Zoning Violations?
Zoning, stipulated by town planners and local councils, dictates various aspects of property usage, such as for residential, commercial, or industrial purposes. Beyond usage, zoning can also define aspects such as maximum density, building design, parking, subdivision, and more. Properties that breach zoning regulations may be subject to fines, legal action, or stop-work orders.
Property titles don’t typically reveal zoning violations or non-compliance issues. To find out about zoning-related matters, you may need to contact the local municipality, search zoning records, or use Archistar to more easily discover information on zoning.
It’s crucial to conduct a title search in the preliminary stages of your project and collaborate with a legal professional to understand the property details’ impact. To simplify the title search process, sign up for a free Archistar account today and perform competitively priced title searches straight from the platform.
