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TITLE SEARCH An examination of the public records to determine what, if any, defects there are in the chain of title. INSPECTION A visit to and review of the premises. A prudent purchaser of property always inspects the premises before closing. NOVATION The substitution of a new obligation for an old one; substitution of new parties to an existing obligation, as where the parties to an agreement accept a new debtor in place of an old one. TAX LIEN Claim against a property for unpaid taxes. SUBJECT TO MORTGAGE A grantee taking title to real property "subject to mortgage" is not personally liable to the mortgagee for payment of the mortgage note. In the event the grantor-mortgagor defaults in paying the note, the grantee could, however, lose property, and thus his equity, in a foreclosure sale. BUSINESS OPPORTUNITIES Any type of business which is for sale. COMPARABLES Recently sold properties which are similar to a particular property being evaluated, and which are used to indicate a reasonable fair market value for the subject property. |
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