There are a number of key elements that an individual has to consider when starting the search to purchase a home. After you have found a home that interests you and an offer has been accepted, but before you sign the final contract, it is important that you secure marketable title and that the home passes inspection. Home inspection allows the potential buyer to come into the home with a certified third-party inspector who will examine a number of qualities about the house and make a determination of whether the house is livable and worth purchasing. Marketable title on a house is given to show that the title is free of liens or defect.
If it is found that a house has marketable title, a factor on which the contract for buying a home is usually contingent, it will force acceptance of the contract and purchase of the home. Marketable title is given at the closing of the home, but can be requested prior to closing. A title examination is performed by a licensed attorney or by a title insurance company. Title insurance companies specialize in finding defective titles, titles with a mortgage or lien against them, as well as titles with conveyance issues such as right of way or easements. Additionally, you will get a chain of title, which outlines previous ownership of the property, giving you an idea of how many previous owners there were and the nature of its use.
It is not uncommon for a title to come up with something on it, such as an easement or a right of way. When this happens, it is generally not grounds for cancellation of the contract. The current owner will be given a good faith attempt to have the mark on the title removed, whether by contacting his or her bank, the previous landowner, or the individual with whom a land use agreement was made. Once a title is cleared for marketability, the bank can proceed with closing, assured that the purchase will be a legitimate, clean title to a new home.
Upon closing, the new owner will be given a few things in order to secure title. A title commitment is given, which contains the type of insurance policy being submitted, who the buyer and seller are, the legal description of the property in question, as well as a list of items that must be verified as correct in order for the policy to be issued, and any exceptions or items not covered under the title commitment. Once that is accepted, the buyer has a new home.
Considering Home Ownership?
The purchase of property is a monumental step in many people's lives. If you or someone you know is purchasing a home and seeks the assistance of an experienced real estate attorney, our office can help. Please reach out to attorney Nesbitt by phone at 303-741-2354 or using our website.
Water is a finite and valuable resource. When developers seek to build, be it commercial or residential, they must obtain water rights. Due to its finite nature and importance, obtaining water rights is not easy. Basic Water law The Colorado Constitution mandates the framework establishing Colorado water law. It is known as the prior appropriation system and it regulates river water rights in Colorado. Water rights include the use of surface water in rivers or tributary groundwater connected to a river basin. Usufructuary Right While water, like real estate, is a private property right, it is a special type of right called a usufructuary right. This means that water rights are a right to use water, not to possess or own water. It is misconception that a water right in Colorado grants its owner a certain amount of water to use in any way the owner of that right wants. In fact, a water right does no such thing. Instead, a water right allows its owner to divert water for a âbeneficial useâ only. Colorado law defines beneficial use broadly to include a variety of applications, from municipal and industrial, to environmental and recreational. Obtaining Water RightsTo be granted a water right, one must petition the Water Courts for such a right. Water Courts are unique to Colorado and exist because Colorado is a semi-arid state and water is crucial to human existence. As such, attaining a water right is not an easy task. Furthermore, nearly every river in the state is over-allocated so that the combined rate of all established and vested water rights exceed the available flow of the river being appropriated. Tracking water rights is unique in Colorado. Water rights are generally conveyed like real estate and recorded as a deed within the county where the rights are located. As mentioned, the âbeneficial useâ requirement is construed broadly. However, all beneficial uses in Colorado come with two explicit limitations: the prohibitions against waste and speculation. For waste, a water right may only be used in the amount necessary to accomplish its purposes using reasonably efficient practices. For speculation, there must be a present demand for the water delivered by the water right, one cannot divert and hoard water, without some immediately apparent need. Â Consider how much water is used daily and how often it rains. While Colorado receives significant snowpack, 10 inches of snow equals just one inch of water. Thus, Colorado requires special water rules to assure that it allocates water correctly. Court System Another unique aspect of Colorado water laws is the judicial system. For other courts, those seeking an appeal of a lower court appeal to an intermediate court. Regarding Water Courts, those appealing the ruling of a Water Court appeal directly to the Colorado Supreme Court. If you are a real estate developer, you already know that water rights in Colorado are complicated. Before embarking on a new project, you should consider contacting an attorney who specializes in Colorado water law issues.Â Â Eric L. Nesbitt, Esq. Law Offices of Eric L. Nesbitt, PC Phone 303-741-2354 Email Us Nesbitt Law Offices Website[img]http://feeds.wordpress.com/1.0/comments/commercialrealestateattorney.wordpress.com/19/ [img]https://pixel.wp.com/b.gif?host=commercialrealestateattorney.wordpress.com&blog=92721057&post=19&subd=commercialrealestateattorney&ref=&feed=1