When it comes to buying or selling a property, there are a lot of legalities involved. One of the most important aspects is providing a legal description of the property in the sales contract. While it may seem like a minor detail, this information is crucial for several reasons.
First and foremost, the legal description identifies the property being sold. This description typically includes the property`s boundaries, lot and block numbers, and any other relevant information that uniquely identifies the property. Without this information, it would be difficult to determine which property is being sold.
Moreover, the legal description plays a significant role in determining the property`s value. When an appraiser evaluates a property, they rely on the legal description to determine the property`s boundaries and specifications. This information is critical in determining the property`s market value, which ultimately impacts the sale price.
In addition to these reasons, the legal description is also essential in the title search process. When a property is sold, the buyer and their lender conduct a title search to ensure that the title is clear and free of any liens, encumbrances, or other issues. The legal description is crucial in this process because it helps to identify any potential problems or issues with the property`s title.
When a legal description is missing or incomplete in a sales contract, it can cause significant problems for both the buyer and the seller. It can result in a delay in the closing process, or worse, the entire transaction may fall through. This can be frustrating and costly for everyone involved.
In conclusion, providing a legal description in a sales contract is essential for several reasons. It identifies the property being sold, helps to determine its value, and is necessary for the title search process. Therefore, it is imperative to ensure that the legal description is accurate and complete when buying or selling a property.