Key Takeaways
- Always get an ALTA survey—boundary disputes and easement encroachments do not appear in standard title searches.
- Review every lease provision, not just rent and term—right of first refusal and exclusive use clauses can destroy value.
- Unpermitted work creates liability that transfers with the property—check permit history with the building department.
- Rent control status, rental registration, and open code violations are regulatory issues that transfer to the new owner.
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Test Your Knowledge
1.What regulatory pitfall transfers to new property owners?
2.Why should you verify permit history with the local building department?
3.What is rent control risk in acquisition DD?