LandInvestors.com Forums **Ask A Question** Problems selling through Title

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    Roy
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    Post count: 10

    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?

Viewing 5 replies - 1 through 5 (of 5 total)
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  • Joe McLain
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    Post count: 41

    You could talk with a company called tax title services. I do not endorse them but they are supposed to be able to help with these kinds of case. Best of luck

    Joe

    Roy
    Participant
    Post count: 10
    Pro

    Thank you, Joe. I’ll give them a try.

    Roy
    Participant
    Post count: 10
    Pro

    Update: Tax title services want $1,250 to resolve the issue. However, it is my understanding that they don’t give title insurance, rather just prepare the property to be able to be insurable. Quiet title costs $1,500, so no real difference in price. Bear in mind, both solutions don’t make economic sense to me at these prices.

    Any other suggestions? Anyone?

    Milan
    Participant
    Post count: 511

    That’s a tough one. But it seams like you’re playing with little money here, which is good.

    Try to sell for cheap, even at the same price you bought it to the neighbor and move on.

    Your mistake makes me wander what I would do if I found out my parcel is uninsurable. My numbers are little higher than that. So the overall loss will be higher. I can see the value of closing through title in higher deals.

    Roy
    Participant
    Post count: 10
    Pro

    Thanks for the responses.

    Yeah, it’s around bought for $2K and selling for $7.5K. Selling for cheap is always an option, but I don’t want to sell for cheap. It’s a good property. Plus, if it’s an easy fix, I’d be kicking myself later for not making the effort to get the full amount I could have gotten.

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