Here are some of the top reasons home sales fall through.
Property report is a critical term in real estate transactions. Bankrate explains what it means.
What is a property report?
A property report includes a variety of documents that provide a comprehensive profile of a property. Prospective property buyers, sellers, mortgage lenders, real estate professionals, lawyers and other parties rely on property reports. Licensed surveyors prepare “real property reports” that are legal descriptions of a property’s boundaries and footprint. There are also property reports that provide a property’s ownership and sales history, local market statistics and may include listing photos. A property report is also a legal disclosure that a timeshare developer is required to give to prospective buyers.
A property report provides comprehensive details about a property, including its address, the name of the owner, a physical description of the building or site, including its layout and design, improvements to the property, its history, sales and listing activity, local market statistics, neighborhood demographics and foreclosure activity. A property report may include listing photos and information about nearby schools. Real estate brokers and agents can access public and proprietary data to compile a complete picture of a property.
A property report by a licensed surveyor defines property boundaries and can be used to clear up disputes. These reports are important for someone building a new house or adding a patio, garage or fence to an existing home. The surveyor’s report also describes easement rights that a utility company may have so it can maintain and repair water lines, sewer pipes, etc. Surveyors’ reports also include the zoning classification of a property, the presence of surface waters such as ponds or wells — even the location of old cemeteries that may be on a plat.
A property report may also refer to a title report, which reveals any liens or other encumbrances on a property’s title, as well as the property’s tax rate and status, and a legal description of the property.
Another type of property report is prepared by a timeshare developer. Whether the timeshare is completed or being developed, the developer must provide potential buyers with a report that details the property’s layout, features and specifications. The report provides comprehensive information about the timeshare program, restrictions of use, fees and other details.
A property report is different from an inspection report. Home inspectors prepare reports after inspecting the roof, plumbing, electrical wiring, foundation, ventilation and other structural features of a home or building.
Property report example
Kristen and Tom decide to buy a timeshare in one of their favorite vacation destinations. Before they close the deal, they get a seven-page property report from the developer that explains the parameters of their interest in the property, when and for how long they are allowed to use it, restrictions on pets and guests, the annual dues and other fees and assessments, a list of amenities available to them, and rules on exchanges with other timeshare projects.
Use Bankrate’s calculator to determine how much house you can afford to buy.
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