It seems that now, more than ever, the issue of clear and marketable title of real property is becoming more of an art than a science. As previously foreclosed properties change hands from asset holder to asset holder, the chain of title often develops a few weak links.
So it is not uncommon to uncover some defects in the abstract as the date of settlement approaches. And many times, correcting the problems can take some time, and often can threaten to postpone a closing indefinitely.
This is no time to panic. As title researchers become more and more experienced with out of the ordinary situations, the solutions are becoming more and more routine. The key point to remember is this:
Everyone wants the property to close!
So even if settlement is delayed, somebody somewhere will get the title into a marketable condition and settlement will occur.
Good deals often are fraught with some inconveniences, but in the end, it’s a win-win for all parties involved. The buyer gets a great price and the seller has one less property to liquidate.
Patience is a virtue … and it pays off in the end!
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so true that we need to be patient in working through title issues, Richard.
Good morning Richard- So far I have been very fortunate with foreclosures. Listing agents that are very professional and helpful. After all, we all want the same thing!
Richard,
Very good point sir. I have had only one instance where the closing was delayed and it came up a couple of days before close and it took about a week to clear up the issue, all over one signature missing.
The good news is it closed and all were happy.
Richard, you bring up an excellent point. Title issues can normally be taken care of, but some times it does take time, especially when government entities are involved.
Richard.....I have to say that whenever I bought a property in the past, I always had my own attorney take a look at the title before I even submitted an offer....I wanted to make sure I wasn't spinning my wheels for nothing.....that would cost me more than a quick peak at the title....
Hi Richrd,
I like the patiene is a virtue... It does pay off in the end as long as we keep the fsith.
Richard,
Time and patience cures all things...even Title issues. Title problems aren't usually on my top three issues causing the most problems in a transaction.
Rich
Hi Richard, even though when things get rough, they always work out in the end. Patience from everyone is key. Have a great day Richard!
Richard, your post also brings out the importance that Buyers should purchase Title Insurance just in case something may have been over looked.
Richard...everyone wants to go to the closing...as you say, it just takes patience.
Hi Richard,
About 3 years ago, I had the patience of a saint during a RE transaction. Long story short: my clients were selling a house. A buyer made an offer but things got held up because it was discovered that there was a title error when my clients bought the house. Now, in order for the deal to go through, we had to get anyone who was on the title when my sellers bought the house to sign off on the title again. Richard, there were 6 people I had to track down. Of course, they all lived miles away from each other. But...I got the job done and we had our closing.
Hi Richard, good advice. I always tell my clients to keep their eyes on the ball when things get messy. The objective is to close the transaction, not get upset by the details, which are always at least a bit, and sometimes a lot different than we expected. Keep up the good work for your clients!
Thanks Richard. I'm afraid, we, as a society, have gotten so accustomed to instant gratification in all things that patience is not one of our strong suits. Today's world requires it and certainly it is better to take a little extra time and get it right.
Richard, up here, the title attorneys sometimes are looking at he title report for the first time as they sit down at the settlement table. I've starting to check up on them really early in the process to make sure they've actually looked at the thing early in the process. Today there are a lot more opportunities for title issues.
There are many problems with titles today. I found out a title company (One that I did not work with) were selling title ins to buyers and never had cleared a the title. There are some real messes out there!
So far I have been alright with the titles for foreclosures, a couple of resales that had issues, but the banked owned properties I have lucked up on so far.
It pays to prepare buyers for delays with foreclosure purchases. Heck, I'm finding with appraisal issues it may pay to prepare private sale purchasers for delays. I suppose for those of us in this business who make it through these "difficulties" we will be well educated when the dust settles.
Richard: A lot of the issues I've seen in my own deals is that a previous refi during the boom was done, and the prior mortgage not recorded as satisfied, or paid. That's a big one. Guess when everyone was busy cashing out their equity, title companies weren't so diligent.
Richard patience is necessary. My broker is always telling me to take my time and not be in a hurry.
Janice...
Right you are. Nothing is more important when closing a property!
Ellie...
Some times there are too many players involved. Glad to hear of your successes!
Don...
I'm glad to hear that you had a happy ending!
I noticed a comment with mention of an attorney. It's odd, in Florida, very few buyers and sellers use real estate attorneys. The title companies handle the title work, and that's all most peopel are concerned with. However, I know of a couple of areas where title companies will frequently leave "exeptions" on th title policies. So I always ask, and clarify these areas with my clients sitting right there at the closing table.
Richard - changing conditions require changing tactics, have a great and prosperous year