Posted by Buck_GA on August 04, 2002 at 12:02:44:
Osirus,
Here in Augusta, we have several attorneys that specialize in real estate. They all do closings. Their prices vary from $250-450 and up depending on the amount of required work. They do the preliminary title search, create the documents, and help negotiate deals in their offices.
We don’t have title companies that I know of here, attorneys edo it all.
Buck
GREAT Deal w/ Title Snag Hellllllpppppp! - Posted by bird Dog Ron
Posted by bird Dog Ron on August 02, 2002 at 15:08:43:
Hey guys,
I have this great deal and have had the seller accept a verbal offer of $13,000. The place needs a little work in a neighborhood that goes for about $50-$60k.
Here’s the prob. The original owner has died and simply “gave” the house to her grandmother who then “gave” the house to the present owner her grandson.
None of this has been recorded or have gone through probate. He has been renting this place out for the last 3 years or so and acting as owner.
He does have the original deed from the original owner, but it has not been signed over to anyone.
Is this situation workable? Can a title company issue a bond for the title on this? Is it worth the hassle for a $30k profit?
Thanks a bunch!
Ron
Re: GREAT Deal w/ Title Snag Hellllllpppppp! - Posted by Bud Branstetter
Posted by Bud Branstetter on August 03, 2002 at 17:54:50:
There are several different approaches to this problem. In most states there is a process for small estates rather than full blown probate. In Texas it is an affidavit of heirship. That only determines who the heirs/owners are by state law. Then you can get a deed from them.
Another approach is adverse posession. When someone acts as owner, pays taxes etc for long enough then the courts allow their claim to ownership. An attorney would know those time frames and the process for small estates. Just because the things are not recorded does not mean their are invalid. But it probably needs to be written and signed to hold up. You could take possession, take the income while title is being resolved. Or record an option while it is resolved. A quit title action where there is no dispute could cost 2-3K. Is it worth it to you.
Re: GREAT Deal w/ Title Snag Hellllllpppppp! - Posted by Ronald * Starr(iIn No CA)
Posted by Ronald * Starr(iIn No CA) on August 02, 2002 at 20:42:13:
Bird Dog Ron–+++±-------------------
Rob(FL)'s advice is sensible.
Since you talk about “a $30000 profit,” I guess you were thinking of reselling it quickly. Then you probably should follow Rob’s advice.
If you wanted to hold it for rental income, there would be no need to have clear title. You could accept deeds from the grandmother and current owner and they would go away thinking they had sold the property to you.
When you rent it out, the renters will never check the ownership records.
Then, years down the line, you could apply for a deed through the doctrine of adverse possession. This requires a quiet title lawsuit. Before you do something like this, I recommend talking to an attorney who specializes in real estate and is very knowledgeable.
Good InvestingRon Starr*********
Re: GREAT Deal w/ Title Snag Hellllllpppppp! - Posted by Rob FL
Posted by Rob FL on August 02, 2002 at 19:03:42:
Get with a real estate attorney and see what will be required to give you clear title.
Why the need for Real Estate Attorney? - Posted by osirus
Posted by osirus on August 03, 2002 at 13:11:43:
I interpreted this situation as being pretty straight forward to deal with after reading bird Dog Ron’s oringinal post. He worte:
“”“He does have the original deed from the original owner, but it has not been signed over to anyone.”“”
I understand this to mean that at some point before to oringinal seller died; she deeded her house to her grandmother. The grandmother in turn either deeded or leased it out to her grandson.
Could not bird Dog Ron simply first record the deed from the oringinal seller to the grandmother. Then buy the property from the grandmother? Why should a lawyer get involved? Let me guess…since deeds were not recovered and the oringinal seller still officially owns the property; anything outstanding liens, libilities, and debts against the oringinal seller will still attach to the property?.
Re: Why the need for Real Estate Attorney? - Posted by Rob FL
Posted by Rob FL on August 03, 2002 at 16:45:00:
It sounds to me like there are potentionally 2 deceased people in the chain of title, 2 un-probated estates, and a deed that hasn’t been signed over? whatever that exactly means. There is a probable chance that some heir or sibling might be running around with a claim on this property. Why take a chance on a screwy, borderline situation? I have attorneys do closing all the time and the fees are normally about the same as any title company would charge.
Attorneys do the closing - Posted by osirus
Posted by osirus on August 04, 2002 at 03:41:24:
“”“I have attorneys do closing all the time and the fees are normally about the same as any title company would charge.”“”
Do the attorneys do everything that a title company does including a preliminary title report as well as title insurance? In addition, am I correct in assuming that an attorney is able to do more flexible closings such as an simultaneous closings?
I am asking this because out of the three title companies in my area, 2 of them do not allow simultaneous closings and the third one only agreed after intense and thorough explaination.
Re: Attorneys do the closing - Posted by Rob FL
Posted by Rob FL on August 04, 2002 at 16:12:10:
I’m not aware of any closing agent (title co’s, attorneys, etc.) that don’t do a premliminary title check, prep the docs, conducting the closing, and issue title insurance. In today’s competitive market I would think anybody that offers a substandard package would quickly go out of business.
I will say that I am in Orlando, and the real estate market here is very hot. Any title company or attorney here that’s been in business more than a year or so has had experience with a simultaneous closing. If you have to explain it to the closing agent, it’s probably alot simpler to pick up the Yellow Pages and call one of the other 300 title companies or real estate attorneys listed there.