Posted by John Merchant on April 07, 2007 at 11:38:04:
Recommend you do start reading the title report or commitment, particularly the page or two that sets out rights, liens, reservations and exceptions.
Where you know ahead of time just what you want to do with the property, require that specific purpose be OK’d and guaranteed by that TC so you KNOW you’re covered…and if the TC can’t do it, don’t buy the RE.
e.g. 2 or 3 years back I bought a landlocked parcel in a rapidly growing area on which I saw an opp to build a house.
Since it was landlocked, I was able to get a great bargain price on the parcel…but of course I knew it could be a real fight getting access across the adjacent land.
So I required the TC to include special warranty that the parcel included a long ago acquired written easement allowing for just this drive-way access and I did have the absolute right to cross that property.
I paid extra for this guarantee and proceeded to close on my purchase.
When I notified the other landowner, she had her lawyer respond that we had no such right and to forget any crossing of her land.
To make long story shorter, when I disclosed what ammo I had in my file, the lawyer’s tone changed dramatically…particulaly when she realized that if I did have to sue her client, I’d also bring in the TC and let their big-time, highly paid lawyers do my fighting for me…and their deep pockets were deeper than her client’s.
So demand the TC guarantee the specific purpose you envision, in writing, and if they won’t, you walk.