A \"lien\" is a form of encumbrance. A lien is the owner's (or previous owner's) legal right to force the sale of the property to pay off a debt. One good example of a lien is the mortgage, which you take out to purchase a house. If you do not make loan payments, the lender may foreclose<\/a> on the lien, which includes selling the property at auction and utilizing the money to pay off the debt.<\/p>\n\n\n\n Fortunately, most sale contracts provide that the seller must settle these liens in full at closing. Thus, the buyer need not be concerned about them. However, there are other encumbrances that the owner should worry about.<\/p>\n\n\n\n In newer communities, covenants, conditions, and restrictions\u2014abbreviated CC&Rs\u2014are typical. They were imposed by developers of new neighborhoods beginning in the 1930s. They were employed, in part, to uphold discriminatory housing regulations. Progressive cities nowadays are confronting this facet of our racial history and making an effort to put it behind us. Furthermore, these limitations have been unlawful and unenforceable since the 1960s.<\/p>\n\n\n\n The uses of the land are restricted under the CC&Rs. In contemporary residential areas, a Homeowners' Association is frequently formed. Do you wish to hang your clothes outside to dry because you care about the environment? Most likely not permitted (since this was essentially illegal in the 1960s and was frequently prohibited under CC&Rs at the time). Considering painting the exterior a more contemporary PNW style? The HOA's Architectural Review Committee needs to give feedback first.<\/p>\n\n\n\n Of all, a neat, uniform, well-kept community benefits owners just as much as it does. However, the limitations shouldn't come as a surprise (nor the expenses; dues to an HOA are due every month or they become liens).<\/p>\n\n\n\n An easement is permission to utilize another person's land for a certain purpose. One popular kind is an easement for utilities. The utility company now has permission to maintain lines across or beneath your property. They are allowed to enter your property as often as necessary to fix the lines, but after they are done, they have to take care of it. Utility easements are quite prevalent and usually not a problem.<\/p>\n\n\n\n Another kind is an easement for entry and exit. This would include a common driveway and in certain cases, a private road that services several parcels. Now this one might pose an issue.<\/p>\n\n\n\n Driveways that are shared by neighbors are well-known breaking points. For decades, many people have shared a driveway with their neighbors without ever experiencing any issues. However, that's not the case for everyone. Therefore, it pays to know right away.<\/p>\n\n\n\n Ensuring that any liens against the property are settled at closing is a part of the sale procedure. This is accomplished in Washington and many other states using a title insurance<\/a> firm. <\/p>\n\n\n\n Upon the parties' agreement, the title insurer receives it. They give a title report that identifies all of the liens on the property's title. The insurance provider then collaborates with the closing agent to guarantee that, before the buyer becomes the owner, all liens are paid off and removed from the title. <\/p>\n\n\n\n A copy of the title report will be given to the buyer at the time of issuance. Under a title contingency, a buyer typically has five days to examine and accept the title report. If the buyer objects to any encumbrances, the seller must remove them before closing. If the vendor fails to comply, the transaction falls, and the buyer receives her earnest money back.<\/p>\n\n\n\nLet's Talk About Restrictions, Conditions, And Covenants<\/h2>\n\n\n\n
Problems Might Arise From Easements<\/h2>\n\n\n\n
![\"house](\"http:\/\/indylegal.com\/staging\/wp-content\/uploads\/2024\/10\/house-miniatures.png\")
<\/figure>\n\n\n\nExamining A Title Report<\/h2>\n\n\n\n