This is an important matter because if an application is not made, then a buyer may be in violation of the sale agreement. A violation of the sale agreement, in turn, could be grounds to forfeit the deposit. When you meet with a lender, be certain to obtain a letter stating that you met and showing when. Immediately provide this letter to the seller's broker in the manner required by the sale agreement. 1999 Peter G. Miller, All Rights Reserved.
Every property has a history of ownership outlined among local public records.
When a property is sold, this history is reviewed to assure that the current seller has title and the right to sell the property. The catch is that property records may not record all possible title claims. For instance, a prior owner may have been a drunk, drug user, bigamist, or lacking the mental capacity to sell a property interest. A lien against the property may have been missed in the title search. 1999 Peter G. Miller, All Rights Reserved.