LandInvestors.com Forums **Ask A Question** Title company blew up deal

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    Jason Wollbrink
    Participant
    Post count: 5

    Has anyone ever had this happen? I got a nice 10 acre parcel under contract for 6500. According to my research I would be able to most likely sell for Cash for 20k and maybe offer on terms for 30k. I decided to send to a local title agency, because the property was in an trust name and inherited by the granddaughter (who was selling). They wrote me after a couple of weeks that they needed to contact her directly because they would need to deed to her first before closing. She even asked me for a time extension on the 30 day purchase agreement she and I had signed. Then yesterday she (the seller) writes me to say that the title company told her the property is worth 125k, and that she doesn’t even want to sell it now.

    What to do? Remind her we have a legally binding agreement? Or move on. Have spent a good bit of time in due diligence. I also wrote the title agency to see what happened…

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  • Rod Hall
    Participant
    Post count: 348
    Pro

    Happened to me in a similar way. Had photos ready and ads ready to post. I still call them to see if they changed their their mind. Thanks lawyers now she is probably stuck with it. Some realtor will tie it up and do nothing. I guess I’m just commiserating cause that is really messed up. But I would call them every so often. Likely she’ll still have it, – best

    Kevin Farrell
    Moderator
    Post count: 1645
    ProAdvanced

    Shame on the title company but it happens. If they are correct about the value you were way low. Perhaps if you were buying for $30k or so, they would not have interfered. We are always at risk with the use of title companies. We lose control and timeliness goes out the window.

    Kevin Farrell - Moderator
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    Jason Wollbrink
    Participant
    Post count: 5

    Update on this, I reached out kindly to title company for explanation… Turns out the owner had not completed the tranfer from her Parents trust into her name and they told her she would need to do this process first. Apparantly they sent her a “small succesions” process document which said it was for property under 125k which is what she mistunderstood as them telling her the value of the property.

    I forwarded to the owner and basically told her to get the title in order and I would keep my offer on the table for another 45 days. So its good to ask for an explanation first.

    The moral of this story is that people are not always ‘legal literate’. We should remember to not assume anything in the explanation of process, etc.

    Luke Smith
    Moderator
    Post count: 1304
    ProAdvanced

    Nice follow up!. Its like the 10 dollar wording in the deed and people freaking out about thinking I am scamming them out of their land for $10.

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