A title search, a survey, and an HOA assessment check each look at a different risk, and all three can change your decision to close. A title search finds out whether the seller can actually transfer clear ownership. A survey shows you exactly where the property lines and any encroachments are. An HOA check tells you what you owe and what’s coming. Here’s what each one covers and why the due diligence period is the time to run them.
What a Title Search Actually Finds
A title search is a review of the public record for the property, going back through past owners, deeds, and any claims against the property. What it’s looking for is anything that could keep the seller from transferring clear ownership to you, most commonly:
- Liens — unpaid debts attached to the property, like a contractor’s lien for unpaid work, unpaid property taxes, or a judgment against a past owner
- Old mortgages that were never properly released — this happens more than people expect, especially on older homes
- Boundary or ownership disputes tied to a prior sale or inheritance
Your closing attorney orders the title search and title insurance as part of the transaction. If something turns up, it typically has to be resolved (usually by the seller, often paid out of their proceeds at closing) before you can close. This is separate from the NC due diligence money you put down to hold the property while these checks happen — the due diligence period is exactly when title issues need to surface.
What a Survey Shows You
A survey is a licensed surveyor’s drawing of the property’s actual boundaries, based on legal descriptions and physical markers, not what a fence or a hedge line happens to suggest. A survey can show you:
- Whether a fence, shed, driveway, or other structure sits on the property you’re buying, or actually crosses onto a neighbor’s lot (an encroachment)
- Easements — legal rights other parties have to use part of the property, like a utility company’s access to a line running through the backyard
- Whether the lot matches what was represented in the listing
Not every resale transaction includes a new survey, and older surveys can be out of date if anything’s been added to the property since. If boundary lines matter to you, especially on a lot with a fence, outbuilding, or shared driveway, ask your agent whether a current survey is available or worth ordering during due diligence.
What HOA Assessments Actually Cover
If the home is in a community with a homeowners association, you’re not just buying the house — you’re buying into the HOA’s finances and rules. Two things to look at separately:
- Regular assessments — the recurring dues that cover shared amenities, landscaping, or maintenance, and how much they’ve increased over the past few years
- Special assessments — a one-time charge the HOA can levy on all owners to cover something regular dues didn’t, like a roof replacement on a shared building or a legal settlement
Before closing, you should receive HOA disclosure documents that show the current dues, any upcoming special assessments, the HOA’s financial reserves, and any rules that apply to the property. Read them during due diligence, not after you’ve moved in. An HOA with low dues but no reserve fund can mean a special assessment is coming; one with healthy reserves and steady, modest increases is usually a better sign.
Why All Three Belong in the Due Diligence Period
In North Carolina, the due diligence period is your window to investigate the property and walk away if something’s wrong, and your due diligence money is generally at risk once it’s paid — so timing matters. A title search, a survey (if you’re ordering one), and a full review of HOA disclosures should all happen during that window, alongside your home inspection. That’s also the time to flag anything through your closing attorney or agent before you’re committed. If you haven’t already, it’s worth reading what happens after your offer is accepted in North Carolina for the full due diligence timeline, and the 7 NC home inspection red flags first-time buyers can’t ignore for what to watch for on the physical side.
Get the Full Buyer Roadmap
None of this needs to be figured out alone. Grab the free Ultimate Buyer Guide for the complete Charlotte buying timeline, or reach out and I’ll walk you through what to expect on a specific property.
FAQ
What happens if a title search finds a lien on the property?
The seller typically has to resolve it, usually by paying it off out of their sale proceeds, before the sale can close. Your closing attorney will flag this and won’t let the sale close with an unresolved lien unless it’s specifically addressed.
Do I need a survey if I’m buying an existing home?
It’s not always required, but it’s worth asking about if boundary lines, fences, sheds, or a shared driveway matter to you. An older survey may not reflect changes made to the property since it was drawn.
How do I find out about HOA special assessments before closing?
Your contract should include a right to review HOA disclosure documents during due diligence. Ask your agent to request the HOA’s financial statements and any record of recent or upcoming special assessments.
Can I back out of a contract if I find a problem with the title, survey, or HOA during due diligence?
Yes — that’s what the due diligence period is for. You can generally walk away for any reason during that window, though your due diligence money is typically not refunded if you do.
Questions About a Specific Property?
If you’re already looking at a home and want a second opinion on what a title report, survey, or HOA packet is telling you, get the Ultimate Buyer Guide or reach out directly.
Maureen Mahood, Broker-Owner, Sell Your Home Charlotte | Licensed in NC & SC | 704-621-3066 | Equal Housing Opportunity