Reminder: the title search process is critical
Updated: As of 2p, I have received closing documents. Onward
Last week, we released episode 7 of our podcast about the importance of the title search portion of real estate transactions.
Damn, Gina. Was that perfect timing or what?
Yesterday, I was supposed to close on my investment house. (Read that story here.) Late in the day, I learned it may be pushed. In the world of real estate, that happens. Usually, though, not with cash sales. Generally, it’s lender needs, though. And this time, it was no exception. Apparently, discovered during due diligence, there were discrepancies in the seller payoff information.
Not a HUGE issue. If all parties agree, closing could still go forward, with fund dispersal happening at a later date.
But wait. There’s more.
There were three beneficiaries, but only one deed signer. No one knows why those two don’t need to sign. No documentation to say they have no rights to the property. Without that, they could totally have a claim. And to top it off, it looks there are some questions around the POA. {SIGH}
Yup. I was pretty sure by 11A today I was being punked.
To make matters worse, it felt to me as if certain people in this transaction were trying to take advantage of my inexperience at buying a home at auction. I kept getting emails to push this forward regardless of circumstance.
STOP RIGHT THERE.
It is correct that I’ve never bought a home at auction before. But I’m a real estate agent and have been around this world for most of my life. You will not ramrod this forward until I’m comfortable and confident that I have clear and equitable title in this house. No crazy cousin is coming out of the woodwork. No bank is going to stake a claim. Regardless of time, getting is right is the only way to move forward. And while holding off a day or two seems arduous at the time, it’s worth it.
I did end up using Sherrie from my podcast to help me with this home. She has definitely been my advocate, so yay! And I did purchase title insurance. And while that looked like an expense I could avoid since I was putting it back on the market sometime soon, I. knew it was invaluable to safeguard my ownership. I’ll sleep better thanks to that decision.
I’ll keep you posted on how this is going. Meanwhile, I said that this endeavor was going to be lesson-a-palooza. So here are today’s.
Hire a title professional. You are paying for the ownership, and you must ensure it.
If you are not comfortable, always have an agent on your side. They fight for you.
Purchase title insurance. You never know.
Lastly, if you do not feel comfortable with something, let someone know.