Buyer's Guide

A preliminary title report is one of the most critical documents in a real estate transaction, yet many buyers overlook its significance. A skilled and experienced real estate agent understands how to analyze this report to protect buyers from potential legal and financial pitfalls. Here’s why having an agent who thoroughly reviews the preliminary title report is essential:

1. Identifying Liens and Legal Issues
The preliminary title report reveals any outstanding liens, unpaid taxes, or legal judgments against the property. A knowledgeable agent will review these details to ensure the buyer isn’t unknowingly taking on someone else’s financial burdens.

2. Confirming Ownership and Chain of Title
A good agent verifies that the seller has a clear and marketable title to the property. Issues such as fraud, missing heirs, or undisclosed co-owners can complicate a transaction. Ensuring a clean title helps prevent costly legal battles in the future.

3. Understanding Easements and Restrictions
Easements allow third parties—such as utility companies or neighbors—access to certain parts of the property. Restrictions, such as HOA rules or zoning limitations, can impact how the buyer can use the land. An agent who thoroughly understands the title report can explain how these factors may affect the buyer’s plans.

4. Ensuring Title Insurance Coverage
Title insurance protects buyers from future claims against the property. A diligent agent will help buyers understand what’s covered under their title insurance policy and ensure any title defects are resolved before closing.

5. Preventing Delays and Surprises
Title issues can cause significant closing delays or even prevent a sale from going through. An experienced agent reviews the title report early in the process, working with the title company to resolve any red flags before they become deal breakers.

Final Thoughts
A preliminary title report is more than just a formality—it’s a crucial safeguard for buyers. Having an agent who knows how to interpret this report ensures that buyers make informed decisions, avoid unexpected liabilities, and secure a property with a clean title. When purchasing real estate, working with a detail-oriented agent can mean the difference between a smooth transaction and a costly mistake.

Property zoning is a critical factor to consider when buying real estate, as it determines how the land can be used and developed. Zoning regulations are put in place by local governments to organize land use efficiently, ensuring compatibility between residential, commercial, agricultural, and industrial areas.

Key Reasons Zoning is Important:

Determines Land Use: Zoning dictates whether a property can be used for residential, commercial, agricultural, or mixed-use purposes. This is essential for buyers who have specific plans, such as running a business from home or developing a multi-unit property.

Affects Property Value: Zoning regulations influence property values by maintaining the character of a neighborhood. A well-zoned residential area, for example, helps preserve home values by preventing incompatible developments, such as industrial buildings, from being built
nearby.

Impacts Renovation & Development Plans: If you plan to expand, build additional structures, or convert the property for another use, zoning laws will determine what’s allowed. Restrictions on building height, lot coverage, and setbacks can affect your future plans. Regulates

Environmental & Safety Standards: Zoning laws often include environmental protections, floodplain restrictions, and safety codes to ensure properties meet community standards and don’t pose risks to owners or the public.

Influences Financing & Permits: Lenders may have different financing requirements based on zoning, and obtaining permits for construction or renovations will depend on compliance with zoning laws.

Before purchasing a property, it’s essential to review local zoning laws and understand any restrictions or future changes that could impact your investment. Consulting with a knowledgeable real estate professional can help ensure that the property aligns with your goals and long-term plans.

Recent changes in real estate commission laws are reshaping how buyers and their agents navigate home purchases. These updates, designed to increase transparency and competition, impact how commissions are disclosed and negotiated. Here’s what you need to know:

1. Commissions Are No Longer Fixed
Traditionally, the seller would offer a set commission to both their listing agent and the buyer’s agent. Under the new rules, commissions are now more flexible and must be openly negotiated. Buyers may need to discuss compensation directly with their agent rather than relying on a standard seller-offered commission.

2. Greater Transparency in Commission Agreements
Buyers will now have more visibility into how their agent is compensated. Agents must clearly outline their fees upfront, and buyers may need to sign a buyer-broker agreement, which defines the agent’s role, services, and commission structure.

3. Buyers May Be Responsible for Their Agent’s Fee
Since sellers are no longer required to offer a commission to the buyer’s agent, buyers may need to cover this cost themselves. However, in many cases, buyers can negotiate this with the seller as part of their offer or explore alternative financing options.

4. Increased Competition Among Buyer’s Agents
With commissions becoming more negotiable, agents may adjust their service offerings and pricing structures. This gives buyers the opportunity to compare different agents and select the one who provides the best value for their needs.

5. Potential Impact on Home Prices
Some experts predict that these changes could influence how homes are priced and negotiated, as sellers may adjust their listing prices to reflect shifts in commission structures. Buyers should work with an experienced agent who understands these changes and can help navigate negotiations effectively.

• Discuss commission expectations with your agent upfront.
• Review and understand the buyer-broker agreement before signing.
• Consider commission costs when budgeting for your home purchase.
• Work with a knowledgeable agent who can guide you through the process under
  the new rules.