Posted by ray@lcorn on August 25, 2005 at 17:02:44:
Max,
Defintely order the title report. It’s cheap, and can save loads of heartbreak, especially with commercial foreclosures. I order one for normal acquisitions as a matter of course after we get the contract. But with foreclosures I like to see title before I even think about putting something on paper.
If you’re worried about the broker ordering the report, then call the title company and order it direct.
However, title companies are not going to skew the report for anyone. It is what it is, and there is too much legal liability for them to do otherwise.
A commercial broker sent me a list of properties that are close to my criteria. One is vacant and due to be forclosed on next month. It needs work and may have significant back taxes due. He can give me only sketchy details and hasn’t been able to arrange a showing because the trustee is somewhere else and ??? I have questions he doesn’t have the answer to. We haven’t signed anything with him.
He says:
“we have an attorney in our office that is very familiar with Foreclosure Sales and he has suggested before we do anything, to run a title report. That way we will be aware of any back taxes and/or any other problems that may be there or not. He has made a few calls and says that this may cost $100-$200 for the report. Would you be willing to spend $100-$200 on this report?”
and
“I think that the best route is through a title company because they will go into the public record and find every single detail on this property. The seller may or not even have this information. Or may not divulge any sort of liens or encumbrances that have taken place since the property was foreclosed on. No seller will give any sort of liability toward what they are telling you either. Up until this point, I have been talking to the trustee of the foreclosure sale. A title company will dig and find everything we would want to look at.”
Does this pass the smell test? Should I order a title search through him? This is a very small commercial brokerage.