If you plan to purchase a new home and you want to operate a home-based business out of it, you need to familiarize yourself with a title search. For any property owner, a title search is an important safeguard, as it can tell you a lot of information about the property that you might not have originally known.
Every property is governed by a zoning ordinance. In short, a zoning ordinance is a strict reference to how a property can be used. The two primary zones are residential and commercial, and it's important to understand that the two can sometimes overlap, but not always.
For this reason, some properties are in strict residential zones. Under this guideline, a homeowner cannot legally operate a business within their home, even if it's something as seemingly innocent as a home childcare center.
If you have a desire to operate a business in your home, fail to have a title search performed before the purchase, and later find out about strict a zoning ordinance, you will find yourself in a very unfortunate situation that forces you to close the business. A title search will provide you with specific details on how the property can and cannot be used. It's best to have a title search company to perform a search for you beforehand.
Building Code Violations
A title search will also reveal details about any building code violations that might currently be imposed on the property. Consider a scenario in which a buyer finds a home with the perfect addition off the kitchen to operate their business from, for instance.
They purchase the property with the goal of setting up their business in this space, and then discover that the addition was not properly permitted and must be removed. Not only would this scenario be devastating to their business, but it would be a costly expense they'd be forced to incur to remove it.
Title searches can uncover details about any building code violations a property has so that the potential buyer can be made aware of this problem before they commit to the purchase, which can save time and money.
It does not matter why you want to have a title search performed; a title search company can assist you with the process. Contact a title search services company before you purchase your home to find out all the information you need.