Buying an Investment Property to Rent
If you’re considering buying an investment property to rent, having the right title agency partner at the beginning of your journey is critical. Before making an offer, make sure you understand all the many ways your title agency can help you make the most of your investment.
Benefits of Investment Property to Rent
Why purchase an investment property to rent? Rental properties can be a great way to increase your income and build your financial security. Rental payments are a source of passive income. And when market conditions are right, investment properties can deliver financial returns upon sale.
But, when you find a property you’d like to purchase, it’s critical to take steps to mitigate your risks. That’s where a title agency comes into play.
Risks of Buying Investment Property
Many buyers focus on whether or not the structure they want to purchase is sound. They’re looking at what updates or repairs may be necessary to elevate the property’s value. These are all critical factors to evaluate when buying a property, but there’s more to consider.
When we talk about risks with investment properties, we’re talking about verifying the legitimacy of the title. Without a thorough title search, someone else could claim ownership of your property, or you may have a legal claim that suddenly becomes your responsibility.
Importance of Title Services for Investment Property
A title agency is your way of making sure your investment property won’t lead to legal headaches and financial losses. There are many ways your title agent assists with closing the sale, including:
Title Search
A title agency does the research necessary to verify an investment property’s ownership history and reveals any easements, financial or legal claims that may exist. Again, this is verifying legitimate ownership to ensure someone else can’t make a legal claim for the property. It’s also a way to identify any liens or legal claims for back taxes, unpaid creditors, or contractors. Last but not least, a title search reveals any easements that allow some else to use part of the property.
Property Survey
A title company can conduct a survey or drawing of the property to verify if the home is within the proper boundaries. The survey can also reveal any potential encroachments or areas where a neighboring property intrudes into the boundaries.
Title Search Report
A title search report reveals the ownership history associated with a property. It outlines when a property has been sold, as well as records related to inheritance and legal actions. This documentation determines if the seller has a valid property title and helps the title agency determine if it is a worthy insurance risk.
Title Insurance
Your title insurance agency also provides insurance against lawsuits or claims against the property that result from title disputes.
Mattingly Ford Title Services
Mattingly Ford Title Service is ready to help you get the most out of your investment property. Our goal is to make sure your closing goes as smoothly as possible and nothing comes up down the road that presents an issue.
