ignorance, judgment, neighbors
SO my wife and I bought our first MH finally! But first lets rewind. About a year and a half ago, we bought our first home, 2000 square ft absolutely beautiful in a quite dead end neighborhood. I k...
Forum Discussion
Francesca Knowles wrote:SolidAxleDurango wrote:
I guarantee a title search was required by the lender.
HOWEVER, the lender is not interested in covenants. They are only interested in title chain and claims to the title.
A lender would certainly examine the Title for any encumbrances that may affect the lender's interest- restrictive Covenants may/may not do so.
That's not the same thing as a full search, and it certainly doesn't mean that Insurance is purchased in behalf/name/benefit of the borrower.
That protection has to be purchased by the buyer, and in that transaction the full Title search conducted is meant to turn up ALL encumbrances affecting the property's Title, and that includes restrictions on its use.
You are correct. My statement was just to reiterate that a title search was done... And as you point out, title insurance was likely required to be purchased by the lender....
However I don't agree that the lender would have examined covenants as it relates to specific allowed use (beyond applicability to single family residence)... And if they discovered covenants, that they would line them out to the borrower at closing..
As with all products/items being purchased (regardless of size or value) It's up to the buyer to determine if the item being purchased is suitable for its intended use.
Some buyers (ok, more like too many buyers) do not understand this, and they get caught off guard after the fact.
More than once, I have written into the contract, a contingency based upon my review and acceptance of any restrictions (my actions must be completed prior yo closing of course)...
