I have a residential parcel that was conveyed to me via a Warranty Deed. I did’t buy through Title, rather using a mobile notary.
When I came to sell the parcel to the neighbor, he wanted to go through Title, since he was thinking about building on the parcel in the future.
Title Company was concerned and delaying the closing since the person who sold me the land received it through an Affiants Deed in 1997 and Title Company could not tie the previous owner’s vesting to my seller’s Affiants Deed that put my seller on title (in 1997).
Title Company was trying to contact the heirs of that previous owner but had no luck. Finally, after waiting several months, my buyer and I got tired of waiting and decided not to extend Title Company any more time to close. The buyer is still interested in buying but is now concerned that this parcel is un-insurable.
There is no other Title Company in the area.
As far as I see it, I have a few options:
1. Get an attorney to do a quiet Title action, but that might be expensive.
2. Tell the buyer that I will insure the title on the parcel (for a fee). My thinking is that I’m only insuring the cost of the land. So my worst-case scenario would be if someone came along to claim it, I would refund the buyer his money and lose my initial investment (just like Title would), but given the small chance it might be worth it.
3. Forget the neighbor, drop the price significantly and sell to someone else without the buyer ever being able to get Title insurance. (this is my least favorite choice)
Any thoughts or other suggestions?
You must be logged in to reply to this topic.