Most people know surprisingly little about a property before they buy it, or even before they sell one they already own.
They know the address.
They know approximately what they think it's worth.
They may know what the property taxes are.
And that's often about it.
But a property has a history.
It has legal ownership. It has a legal description. It may have mortgages, liens, tax issues or other recorded matters attached to it. It has previous sales, surrounding comparable properties and financial information that can tell you much more than what you see during a showing.
That's why Viking Title offers Property DNA Reports.
Think of a Property DNA Report as an early look beneath the surface of a property, before you're deep into a transaction and surprises become expensive.
An Address Isn't the Legal Description
Every property has an address people use to identify it.
But the street address isn't necessarily the property's legal identity.
A Property DNA Report can provide the property's legal description.
Many residential properties have relatively straightforward lot-and-block legal descriptions identifying a particular lot within a recorded subdivision.
Other properties, particularly larger parcels, older properties or land outside traditional subdivisions, may have much more complicated metes-and-bounds descriptions.
Why does that matter?
Because when real estate changes ownership, we aren't simply transferring “the house at 123 Main Street.”
We're transferring a legally defined piece of real property.
See the Property's Ownership History
A DNA Report can also provide a snapshot of the property's chain of title.
Depending on the property and available records, that may show the most recent transfer and sometimes several previous transfers.
That gives you useful context:
- When was the property last sold?
- Who acquired it?
- How long has the current owner held it?
- What was recorded when ownership changed?
A complete title examination goes much deeper when an actual title order is opened, but the DNA Report gives buyers, sellers and real estate professionals valuable information much earlier in the process.
See Existing Financing
A Property DNA Report may identify recorded financing against the property.
Mortgages and deeds of trust are generally considered voluntary liens because the property owner voluntarily agrees to pledge the property as security for a loan.
That information can be valuable for several reasons.
It can help provide context about the seller's existing financing.
It may also identify financing that could potentially be assumable.
Certain government-backed loans, including qualifying FHA and VA loans, may be assumable subject to lender and program requirements.
And in today's interest-rate environment, that's potentially significant.
A seller with qualifying financing originating during an extremely low-rate period may have something buyers care about almost as much as the house itself:
The possibility of assuming a significantly lower-rate mortgage.
A DNA Report doesn't determine whether a particular buyer qualifies to assume a loan. That requires verification with the loan servicer and applicable program.
But identifying the possibility gives everyone the opportunity to ask the question.
Find Potential Involuntary Liens
Then there are involuntary liens.
Unlike a mortgage, these generally aren't liens the owner voluntarily placed against the property to borrow money.
Depending on the jurisdiction and available records, they can include things such as:
- Tax liens
- HOA liens
- Municipal or utility-related liens
- Garbage or sanitation liens
- Judgments
- Mechanics liens
- Other recorded claims
What Is a Mechanics Lien?
Despite the name, a mechanics lien isn't necessarily about someone fixing your car, or even a “mechanic.”
Generally speaking, a mechanics lien can arise when a contractor, subcontractor, supplier or other qualifying party provides labor or materials improving real property and claims they weren't paid.
Requirements vary considerably by state, but when properly established, that claim can potentially attach to the real property.
That's exactly the kind of information you'd rather discover before you're trying to close a sale.
And Sometimes Records Are Wrong
Finding a lien doesn't automatically mean the owner actually owes the money.
Public records aren't perfect.
Something may have been paid but never properly released.
A lien may belong to someone with a similar name.
A release may have been recorded incorrectly.
An old mortgage may still appear even though the loan was satisfied years ago.
That's another reason early information is valuable.
If something doesn't look right, call us.
Viking can help determine whether something deserves further investigation before it becomes a last-minute closing problem.
Property Taxes
The report can also provide property-tax information.
That's useful whether you're buying, selling or simply evaluating a property.
Taxes affect ownership costs, investment calculations and the economics of a transaction.
It's basic information, but it's information you should know.
Comparable Properties and Estimated Value
Property DNA Reports can also include AI-generated comparable-property and valuation information.
We think this information is extremely useful.
We also think it's important to understand what it is, and what it isn't.
AI-generated comps provide another data point based on available property and market information.
They are not an appraisal, and they don't replace the expertise of a qualified real estate professional or licensed appraiser when one is needed.
Real estate has nuances that data alone may not fully capture.
One house may have been completely renovated.
Another may back to a freeway.
Another may have a view that substantially affects value.
Use the DNA Report as another source of information, not as the only opinion that matters.
Rental and Investment Information
For investors, a Property DNA Report may provide estimated rental-market information and other data useful when evaluating a property's potential.
It may also help someone assess whether a property could make sense as a renovation or resale opportunity.
Again, these are analytical estimates, not guarantees of rent, resale price or investment return.
But having more information before committing hundreds of thousands of dollars to a property is rarely a bad thing.
What About Commercial Property?
Property DNA Reports aren't limited to houses.
They can also be generated for many commercial properties.
However, commercial real estate can be significantly more difficult to value through automated methods.
Two commercial properties located near each other can have dramatically different income, leases, tenant quality, zoning, use, improvements and investment characteristics.
For that reason, automated valuations and comparable-property estimates for commercial real estate should generally be viewed with additional caution and supplemented with appropriate commercial real estate expertise.
The underlying ownership, legal-description, recorded-document and lien information can still be extremely useful.
A Property DNA Report Isn't Title Insurance
This distinction is important.
A Property DNA Report is an informational tool.
It is not a title commitment, title examination, title report or title insurance policy, and it doesn't insure that every potential title issue has been identified.
When Viking handles an actual title transaction, the formal title process goes much deeper.
The DNA Report is designed to give you useful information before you get there.
Why Wouldn't You Want to Know?
That's ultimately how we look at Property DNA.
If you're selling a property, wouldn't you rather discover a potential lien before putting the property on the market?
If you're buying, wouldn't you want to know whether the seller may have an assumable low-rate mortgage?
If you're an agent, wouldn't you rather know who's actually shown as the owner before taking the listing?
If you're an investor, wouldn't you want additional property, financing, rental and market information before making an offer?
Real estate transactions involve too much money to operate with less information than you could reasonably have.
Know the property before you buy it.
Know the property before you sell it.
Know the property before you list it.
That's what Property DNA is designed to help you do.
Property DNA Reports are informational products and are not title commitments, title insurance policies, appraisals, legal opinions or guarantees of property value, ownership, lien status, loan assumability, rental income or investment performance. Information and availability vary by property, jurisdiction and underlying data sources.
