Execution · Lesson 2

Title, occupancy, and permitted use

Confirm who can convey the property and what interests or obligations affect it through the appropriate closing professionals. Names on a data-service record are not a title opinion. Ask about liens, judgments, easements, boundary issues, estate authority, and other matters relevant to the transaction.

Determine actual occupancy. Obtain leases, deposits, rent records, and any related agreements when buying a rental. Do not assume tenants must leave because ownership changes. Have possession and tenant obligations reviewed under the governing law.

Verify your intended use with the correct local authority. Louisville’s Land Development Code covers matters including land use and site development. A mailing address, current use, or seller statement does not by itself establish permission for your proposed project.

Worked example · Hypothetical

A buyer intends to convert a house into multiple units. The rent projections are irrelevant until permitted use, code work, utilities, and financing are confirmed.

Decision checklist

  1. Have title and ownership authority reviewed professionally.
  2. Obtain leases, deposits, rent records, and possession information.
  3. Confirm the intended use with the actual governing authority.

Check your understanding

Does a seller’s statement prove the planned conversion is permitted?

Show the answer

No. Confirm the use and approval requirements with the governing authority.

Put it into practice

Your next action

Send your proposed use to planning staff and your occupancy questions to the closing team. Save their written responses.

Sources & further reading

Sources support the referenced factual points. Examples and teaching explanations are original educational material. Read the editorial approach.