Buying your home is likely the biggest purchase you ever make. That being the case, it is startling how many people go into the purchase uninformed and unaware of the many risks and potential pitfalls surrounding the process.
Knowing what to watch out for can help you to prepare in an effective way for becoming a homeowner. Once you know some of the common traps that many homebuyers fall into, you can actively take steps to avoid them.
1. Errors in the documents
A home purchase involves many important legal documents. You may not read them all carefully enough, and most people do not have the legal knowledge to accurately interpret all the legalese in the purchasing documents. Even something as simple as a typo can cause delays in the home-buying and -closing process. And if there are parts of the legal documents that you did not fully understand, you may face unexpected consequences after you close on the home.
2. Problems with the title
The title is your ownership document, and as such, it is one of the most important documents that you deal with during your home purchase. There are many different things that can go wrong with a title, not the least of which is a title that is not exactly clear. An important step to avoid this problem is to get a thorough title review. Such a review reveals the home's transfer history, as well as any potential blocks to the sale, including liens, easements and encroachments.
3. Lack of seller disclosures
If the seller refuses to disclose information that would otherwise cause you to not purchase the home, this can become a serious legal issue. In Arizona, the law requires sellers to disclose "all known material facts" about a home, but if your seller does not do so, you will likely need to seek a legal remedy if you later discover the problem.