Question on clouding a title. - Posted by Duane

Real Estate Investing
1

Posted by J.P. Vaughan on September 06, 2001 at 17:21:57:

Duane,

You can answer this question for yourself with a little
common sense. Do you think the law would allow you to
cloud the title when you have no legal rights to the
property?

2

Question on clouding a title. - Posted by Duane

Posted by Duane on September 06, 2001 at 13:56:21:

This is a hypothetical situation that just popped into my head. Let’s say I get a few calls from my bandit signs or whatever and for some reason can’t handle the volume of people / properties. I don’t want to put the home under contract, I just want to refer it to another investor for X amount if a sale is completed. Can I legally record an ‘Affidavit of whatever’ without the sellers permission, in order to be flagged of the pending sale? If so, would this hold up in court to assure me of my referral fee? Would I possibly need some loosely defined contract with the other investor to make it more binding?

Thanks,

Duane

3

Another consideration. - Posted by Mark-NC

Posted by Mark-NC on September 06, 2001 at 18:11:24:

Duane,
In my opionion if you are dealing with people that would try to stiff you on your fee’s and then have to worry about taking them to court to get it, you need to find other investor buyers.

I am not saying it doesn’t happen but for the most part there is a unwritten code of ethics amoung most investors that will honor your fee’s and are glad to pay them. Those that do not, will find that what goes around, comes around, and their investing career’s will be short lived once the word gets out.

As far as tieing up the property, I would suggest something as simple as an Option contract. You could easily assign this instead of a using a full offer to purchase contract.

Mark

4

Re: Question on clouding a title. - Posted by dewCO

Posted by dewCO on September 06, 2001 at 17:37:46:

Getting a contract with the other investor is the way to go, however, there is no assurance you will get paid, at least not up front. Perhaps if you had a binding agreement and they didn’t pay you at their closing, and they took title, then you could cloud their title so they couldn’t resell without getting your agreeed upon fee. I’d consult my local attorney about that first though.