LandInvestors.com Forums **Ask A Question** missing abstract or prior owners policy

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  • #19904

    Landrov
    Participant
    Post count: 14

    reposing

    i have a possible deal where the original owner passed away while the property was still in his name. there are trustees and a beneficiary involved. a lawyer is involved in transferring the property to the trustees. it is almost done. however…

    the trustees are saying that they could not locate the abstract or prior owners policy and want this condition be removed from the purchase agreement.

    the beneficiary of this property, a charity organization that has not approved the sale yet.
    the trustees will provide the beneficiary a proper legal form to get their written agreement to the sale.
    the trustees can proceed to sign the purchase agreement as soon as they have received written consent from the beneficiary, or at the expiration of 30 days. If they do not respond to the proposal within 30 days, they are deemed to have legally consented to the sale by us as trustees of the trust??? (not sure if this is a law or an opinion)

    if i proceed on this deal i will go through a title company
    offer was $7,492 and it is supposed to be worth 30k
    taxes due are now about a $1000

    my question is should i proceed with no abstract and if the beneficiary did not sign will this be a legal sale?

    thanks

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  • Kevin Farrell
    Moderator
    Post count: 1026
    ProAdvanced

    No one ever has the abstract or prior owners policy. That is just a contingency to get you out of a deal that you don’t want. As far as the other legal stuff goes – Just make sure that whoever is selling to you is the legal owner. It sounds good. Just revise the Purchase Agreement to exclude the part about the Abstract and give that to them. Since you will close in a title company, there will be someone else besides you who will determine that the seller is the legal owner. I think the risk is low if you have determined that the property is worth $30K.

    Landrov
    Participant
    Post count: 14
    Pro

    thanks Kevin

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