A property reportis a paper that contains detailed information on the property you are considering. It covers everything from any structures that might be on the property to the actual boundaries. It will have text and drawings that show every detail. This type of report can be detailed or basic.
Detailed
This will contain everything that is listed in the basic report below plus a lot more. In addition to the previous market sale, ownership information, and last transfer, it will give you specific locations, site information, details, mortgage information, and area information.
Basic
This is the report that will just give you the last owner transfer and ownership information. It may also be able to give you the previous market sale. You can find much of this information in public records at the courthouse. This property report does not provide much detail and may not show the latest improvements.
This is why when you are applying for a construction loan, you get a detailed report as it must be completely up to date to help ensure that you can get the loan that you need. With a detailed report, you will find:
- Address and legal description of the property
- Property line directions and dimensions
- Designation of any adjacent roads, properties, or lanes
- Signed and copyrighted certification by the surveyor.
- Description and location of all improvements on the property.
- Distances and dimensions from the boundary line
- Easements, visible encroachments, and rights-of-way
One of the benefits of having this report is that if there are any problems that are requiring resolution before the property can change hands they can be taken care of before the property is sold, causing possible legal actions later. When you apply for a construction loan,the lender will want to see that report with survey information that has been verified. They will need this before they can approve the loan to ensure the property is what is stated and it is not a risk to give a loan on the property.
This type of report is used by others than the lender. It can be used by a buyer to confirm the improvements, boundaries, and locations along with looking for any problem areas. One problem could be the encroachment of the city or neighbors. It will let the buyer know if buildings or other structures are too close to the property line.
The owners of the property will also have a detailed document showing the same thing and things that they may not have known about previously. This will help them to remain in compliance if they are trying to improve the property.
Conclusion
As you can see, there are two types of property reports that you can get. If you are trying to get a loan then getting the detailed one is the best choice. It will give them all the information needed to resolve any issues before approving the loan or feeling secure in approving the loan. It will benefit you to have this report when applying for a loan.
The property report is a high important document if you are planning to buy a property. The property report looks into titles of the past owners of the same property, are there any dues as in property tax pending and also evaluates the currently market price of the property.
This property report is also used by the bank that is offering you a home loan. Based on the report they check the property’s market value and then decide how much loan can be sanctioned.