Your firm has been looking for a property to call its own for some time. You would prefer to purchase a property rather than to lease, because you see it as an opportunity to make some money by renting out portions of the space. You’d like your purchase to pay for itself.
You’re not alone in that idea, and it can be an excellent business move. Before you make a purchase or get started on the purchasing process, it may be a good idea to learn more about your legal rights, though, because you need to know how to protect yourself and your purchase.
Title and escrow companies can cause serious legal issues
Title and escrow companies can cause significant legal issues if the roles aren’t executed properly. Some of the claims that a client may end up making if the companies fail to complete their transactions correctly may include:
- Claims of paying improper fees for the transaction
- Claims for the misuse of escrow funds
- Failing to provide insurance coverage
- Bad faith estimates
You may even discover that the title you possess has a cloud, which means that the purchase may be put into question and you may have to focus on a quitclaim deed to resolve the problem.
Know your legal rights to prevent issues with the title and escrow companies
Before you work with any company, it’s important to do your own due diligence to determine that company’s history. If referrals aren’t available or reviews are not good, it may be worth finding another organization to work with.
When you put funds into escrow or get an estimate, it may also be beneficial to have a legal professional review your case, so that you can be sure that you are protected. If the title and escrow company has violated any of the terms of your agreement or failed to take steps to protect your money as it should have, then you may be able to make a claim against it to resolve and problems that resulted. It’s important for you to monitor these transactions to be sure they’re completed correctly.