Title And Covenant Review

Colorado Springs Real Estate Contract Guide – Title And Covenant Review

title and covenant reviewTitle and covenant review is the first step of getting from contract to closing. The seller has to prove they can transfer the property to the buyer without problems and the buyer SHOULD make sure they can use the property the way they want to use it.

 Title Commitment

Title insurance is an insurance policy guaranteeing that the Title And Covenant Reviewseller can sell the house to the buyer without problems. The title insurance company insures against future liens on the home or claims of ownership.

Time line – about a week. The buyer will have a few days to review after that.

Colorado Springs Real Estate Seller:

The seller – (or sellers Realtor®) will order a title commitment on the property.  They may have to address liens or other problems with title if they arise. It is also customary for the seller to pay for the title insurance policy.

Colorado Springs Real Estate Buyer:

The Buyer reviews the requirements and exceptions. (what has to happen for them to issue the policy and what won’t they cover). If they are not ok with how they take title, they get to terminate the contract at no penalty. Be sure to check exceptions! It’s what they don’t cover and that’s also where covenants are listed.

At Closing – The title company issues an insurance policy on the title of the home covering everything except what’s listed as exceptions.

Covenants & Homeowners Association (HOA) Documents

CovenantsA buyer has the right to review the covenants on a home before they buy to make sure they are ok with how the property can be used. Make sure you are ok with the restrictions on the home before you buy. Just because there is no active HOA does not mean there aren’t covenants. Most neighborhoods have recorded covenants. If you violate them (and someone complains), the city can and will enforce them.

If the property is part of a dues paying HOA, the buyer also has the right to review meeting minutes and the budget to make sure that they are ok with what the HOA is going to charge, how they manage their money, and if there are any future plans that will impact the neighborhood or dues.

Timeline – About a week to 10 days to get all documents to buyer. A few days to review and object. Remember, covenants come with the title commitment. The only additional deliverable would be the budget and meeting minutes.

Colorado Springs Real Estate Seller:

It is your job to order and pay any fees the HOA charges to get meeting minutes and budget to the prospective buyer. If your HOA has a website that has all that information, you can send them a link to the website and that will work.

Colorado Springs Real Estate Buyer:

Typically big items to consider are; what kind of fencing is allowed? Is parking allowed on the street? Do you have to get improvements or changes to your home approved before you do them? can you park work trucks outside? What about basketball hoops? Trampolines? Etc. You don’t want to slack on covenant review.

If you have a specific question not covered on this site, please contact me.

 NegotiationTitle Review | Inspection | Survey Insurance | Appraisal | Loan Conditions | Walkthrough | Closing

From Contract to Closing

How To Buy A House In Colorado Springs