Developer Searches
Developer searches are conducted from the deed into a sponsor (builder) of a condominium or co-op (cooperative).
Normally a policy reflecting any easements, restrictons, and master deed information is enclosed and pertinent copies are supplied if required.
What is a Developer Search?
When buying a condo or co-op, a title search is crucial to ensure a smooth and secure transaction. However, the type of title search and the information it reveals differ depending on whether you’re buying a condo or a co-op. Here’s a breakdown:
Condo Title Search
Similar to a traditional single-family home purchase, you’ll typically get title insurance. That protects you from financial losses due to undisclosed claims or liens on the property.
The search examines historical records to uncover any issues with ownership, liens, judgments, easements, or other encumbrances specific to the individual unit you’re buying.
It also verifies the seller’s right to sell the unit and ensures there are no outstanding mortgages or taxes on the unit itself.
Co-op Title Search
Co-ops operate differently. Since you’re not technically buying the unit itself but shares in a corporation that owns the entire building, you won’t have traditional title insurance.
Instead, you’ll conduct a co-op lien search. This focuses on the overall financial health of the corporation and the building itself.
It reveals any outstanding liens, judgments, debts, or violations against the entire building or the corporation, impacting all shareholders.
You’ll also receive financial documents like the most recent operating budget, reserve funds reports, and upcoming assessments.