Rising Interest Rates Make Timely Municipal Searches Critical
Munis are the catch-all phrase for searches of city agencies as part of the buying process: taxes (property taxes, amounts, payment history), water (average usage, money owed, whether paid), certificates of occupancy (CO), open permits, violations, etc.
It is always advisable to perform due diligence up front to minimize risk and potential costs to your client. Even before the client signs a contract, a municipal search will spot potential issues early in the process. Search results can affect not only settlement, but also the contract and negotiations.
- If your client is working toward a tight closing deadline, it’s better to know in advance what violations and open permits, if any, you may be dealing with.
- If financing is involved, early intelligence can help save money by avoiding the need for mortgage commitment extensions and closing before rate locks expire, especially important with interest rates climbing.
- Last but not least, you never want your client to sign a contract without knowing about liens/violations/open permits, etc., or if the property has any covenants or restrictions.
At Cornerstone, our proprietary database makes these searches simple and cost-effective. To learn how we can help you jumpstart your deals, please contact us.
If you have any questions about title insurance or any potential title issues, or if you would like to discuss an upcoming or potential transaction, please contact us.