The investment in the US real estate market has some legal issues that cannot be underestimated. Let’s take a look together with the editor!
- Property Scope
For the real estate to be purchased in different situations, Chinese investors should confirm the relevant property scope and property rights. For example, if the purchase is a shopping mall or a hotel, the property scope to be confirmed not only includes the relevant land and above-ground buildings, but also the equipment and facilities in the building, business secrets such as licenses related to the operation of the commercial property, customer lists, survey and mapping drawings or other intangible assets. If the purchased land is for development, the seller can be requested to give the necessary period for feasibility study and investigation to conduct a more detailed investigation on the relevant situation of the land to determine whether it is suitable for commercial development for the relevant purpose.
- Title Investigation
Chinese investors should conduct relevant title investigations on the real estate property to be purchased to confirm whether there are any title defects. The title investigation can be conducted by a title investigation company. By collecting the relevant publicly available real estate information filed with the local government, including whether the record of property rights changes in previous real estate transactions is continuous and complete, whether there are mortgages, easements or other title defects, whether there are related debts or unpaid taxes and fees, etc., a title investigation report of the relevant real estate is finally formed, listing the title defects or other problems discovered. The problems discovered above should be solved by the seller before the delivery and transfer. Another solution is that Chinese investors can purchase insurance related to the property rights of real estate properties. In case of title defects that are not discovered in the title investigation, they can request the insurance company to make relevant claims.
- Property Inspection
Chinese investors should hire professionals to conduct a careful inspection of the purchased real estate property, including the building structure, pipeline facilities, cooling, heating, power and water supply systems, and whether there are environmental risks (such as asbestos, termites, pipeline leaks, etc.).
