Defect Of Record

One of the double-edged aspects of real estate in a place with a long history—think: Philadelphia or New York—is the landmark property. The structure usually has historic significance and, as such, a new owner may be restricted from removing or altering any aspect of the exterior, and oftentimes, the interior as well to a lesser degree.

A prudent person seeking to purchase such a property might want to look at encumbrances that may have been placed on the property. The document listing these encumbrances is called a Defect of Record, and is publicly filed. Encumbrances can take the form of outstanding tax liens, outstanding legal claims or disputes, and limitations on rights, as to what can be done to the property, such as in the case of a landmark property designation.

So if you find yourself in a position to be able to afford a townhouse or other structure that might have gargoyles, it might behoove you to check for a defect of record, as the gargoyles’ rights might supercede yours.