Posted by Ed Copp (OH) on July 16, 2000 at 08:24:59:
Ann,
I would record the deed to myself, or an entity that I controlled. At this point I would be very careful that the title was good. Be sure the owner who signed the deed is really the owner, and that there are no others who have an interest in the property like spouses or ex-spouses etc.
An unrecorded deed would leave the opening for the seller to further encumber the property while you were doing your rehab work. Even if you trust the seller completely this is a very poor place to be exposed. Things happen. He could get sued and you might inherit his judgement. Even a small judgement is a big headache.
The idea of passing title from the seller to the end buyer is usually done for several reasons. To avoid the conveyance fee, in my state this is 1-4% depanding on which county. This is a minor infraction of the law and is really not worth the financial gain as compared to the trouble that it could cause.
Another problem that I see here is this. When you bring the buyer and the seller together, for a fee (some payment to you) you have then acted as a
Real Estate Broker. This could be a serious problem if you get caught, with fines etc. But more importantly you might find yourself having rehabbed a house, and made it nice only to have the judge give it back to the seller.
Don’t take unnecessary chances. If you can get the deed do that as quickly as possible, for your own protection…ED