Tax Treatment of Testamentary Trusts
It has become quite common for a real estate purchase agreement to provide a subject clause that the deal will be subject to the purchaser checking the title to the property. Stop right there! This is a very important clause and should not be waived until that has been done, as there may well be things on the title that will affect your use of the property.
Take for example the family that wanted to buy the house and install a swimming pool. Fortunately they communicated that concern to us and we were able to determine that there was an easement on the title to that property that prohibited any improvements being constructed in the only area where the pool could be installed.
Fortunately these people were still in a position to “not remove” the applicable subject clause and went on to buy another property where they could build a pool. For situations like this, it is important you voice all of your plans for the property to your Realtor, and that you always read the fine print to avoid a situation where you may be stuck with a property you can’t work with. Luckily, we were able to catch this little snag, and avoid a lot of problems for the buyer.
Remember: Always check the title before you buy!
Photo courtesy of james.thompson