The report of title furnished by the examining counsel or the title company probably sets forth several encumbrances. Some of these, it is provided in the contract, shall remain upon the property. They should be carefully scrutinized to see that they are not other or more extensive than the contract provides. If the report of title shows a mortgage, care should be taken to see that the amount unpaid on the mortgage, its due date, interest rate and interest payment dates are in accordance with the terms of the contract. If the contract provides for different amount or terms of the mortgage, the purchaser should insist upon the delivery to him of a written statement from the holder of the mortgage, executed and proven so that it may be recorded, stating that the amount or terms of the mortgage have been changed and are now as the contract specifies. If such statement be not delivered the purchaser is entitled to an opportunity to make inquiry of the holder of the mortgage.

The purchaser is interested in the property in one of three ways; for an investment, for his own use, or for demolition to make room for a new structure. In any case the rights of the tenants are of great importance. If the property is bought as an investment it is necessary to know what the rent return is. If it is acquired for the purchaser's own use or for demolition, the length of the tenants' terms of occupancy will determine how soon possession may be obtained or the building torn down. For these reasons all leases of record should be carefully examined to see that they are exactly as provided for in the contract, as to amount of rent, date it is payable, expiration of tenacy and all other details. The purchaser should detect any provisions in the leases for renewal, rebate of rent, special repair or other unusual clauses. The purchaser, for further security, would do well to go to the property, before the closing, and interview the tenants, finding out what each claims as his rights in the property.

All restrictive or other covenants shown upon the report of title should be examined carefully. They might be of such nature as to materially affect the use of the property. If a survey has been obtained by the purchaser, he should scrutinize it to see if the building violates any restrictive covenants which are upon the property. The survey will also show any physical conditions of the structures which may affect the title. Any covenants or survey variations not agreed upon in the contract may be waived by the purchaser if he deems them unimportant. If however, they materially lessen the value of the property the purchaser is justified in refusing to take title.