LandInvestors.com Forums **Ask A Question** Question on Chain of Title

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  • #18426

    MaryAnne Proctor
    Participant
    Post count: 17

    Hello all – Hope everyone is having a great and profitable day today! I am a new silver member and also relatively new to buying/selling land. I currently handle only small deals (1-5 acres) and I am wondering how deep you all dig in terms of the chain of title. When I purchase the land, I have the seller sign a warranty deed. When I sell the land I convey title via a special warranty deed. How far back do you feel I need to go in the title chain? Do you all just focus on confirming the current owner or do you go back a number of years and if so, how many (I know this may vary state to state)? Additionally, for small deals like mine, do you research to check for liens, judgments, etc and if so how do you go about finding that information? What tool(s) do you use? As my business grows and I start making larger deals I will of course use a title company but I am wondering how much time and effort I should put in to these small deals. Any input is greatly appreciated. Thank you in advance. MaryAnne

Viewing 4 replies - 1 through 4 (of 4 total)
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  • Jill DeWit
    Participant
    Post count: 439
    ProAdvancedStaffPrincipal

    Hi MaryAnne,

    There are a few ways to do this depending on your comfort level. First is confirm ownership with the seller and ask him for a copy of the vesting deed. If that shows he bought the property back in 1982 and this is confirmed in ParcelFact.com, I would personally call it done right there and feel comfortable.

    If he bought the property recently, I would start in TitlePro247 to dig back for older documents on a property. (see image) Sometimes I can find YEARS of items and other times I find only the last recorded deed. (TitlePro is working on catching up and adding more docs all the time.) You might find different docs available in RealQuestPro or on the county website as well.

    We are comfortable when they have either owned a property for 10 or so years -Or- I can track back a few transactions and confirm property was conveyed correctly each time.

    It seems like I typically have sellers that have owned property for decades…

    Hope that helps!

    Jill

    Neil H
    Participant
    Post count: 142
    Pro

    Hi MaryAnne,

    I’m new as well but just completed my first two purchases in August. One was a title closing (phew!) and the other was an in-house closing.

    For the latter, I hired ProTitleUSA to perform a title search for $137.95. The property is worth about $9000. The owners had bought the property way back in 1981 and then transferred it to their LLC in 2016 — but I still wanted to see if there were any liens or judgments against the property since it was located in a subdivision with an HOA. It came up clear.

    I purchased the search since there was no documentation available in TitlePro247 and because this was my first in-house closing. The fee was hefty but cheaper than a title closing and the spread was large enough to absorb the cost.

    Best,

    Neil

    MaryAnne Proctor
    Participant
    Post count: 17
    Pro

    Hi Jill – I can’t thank you enough for your response. I greatly appreciate your input. I was researching a parcel in TitlePro247 and the results only yielded 2 deeds which only went back about 5 years. I couldn’t find any additional history on the county website either so that is what got me to thinking about how deep I have to dig on these small deals. Just one additional question…..if there is a lien/judgement on a parcel will that information be found in TitlePro247 (assuming the county provided it) or should I be looking someone else all together for that? Thanks so much. I am so excited to be a Silver Member now!!!

    MaryAnne Proctor
    Participant
    Post count: 17
    Pro

    Hi Neil – Thanks for reaching out. I too have used title abstractors in the past but it has been my experience that they really slow the whole process down so I am attempting to learn how to perform this task myself so that I can expedite my deals. I really appreciate your input and look forward to exchanging ideas/information with you in the future! Congratulations on making your first 2 deals and I wish you many, many more!!

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