Make sure you have time for testing and reviewing the results before locking into buying the property. Buyer Beware Warranties give the buyer recourse in case the seller or broker make misrepresentations. Of course, warranties are no substitute for a diligent investigation of the property. Discuss with your lawyer various warranties regarding rights of other parties in the property, payment of assessments or liens, foreign seller status for tax purposes, any hazardous materials now or previously on the property and the authority of both parties to enter into and perform the agreement. The agreement should define which party is responsible for ordering a title commitment and who ultimately pays for title insurance.
Practice varies from state to state.
It is in the interest of both parties to get a title commitment as soon as possible and review it . An early review flushes out problems with who is in title, litigation regarding the property, encroachments, possible problems with the legal description, undefined utility easements that could interfere with the buyer's proposed construction and excess debt that would render the seller incapable of closing. Buyers should be aware what form of deed the seller is offering and what that means to them in the way of warranties of title. Different states have different forms and meanings, so be sure to check with your lawyer and your title company about the most commonly used form. If the seller offers something less than the usual warranties, find out why.