Possible problems with title looming

[Dale Osborn]

How many agents who work with REO properties are disclosing to their buyers that they may not have a clear title to that property? Went to the local REI meeting last night and they were discussing how the banks and real estate brokers and agents are brushing it under the table. REO addenda now has in verbage them that states they are not providing any warranty of a clear title. The example used was item 22 on page 10 of the bank's addendum. Some want to stick their heads in the sand and continue "business as usual".

[J Scott]

Originally posted by Ned Carey:

However if the contract is written such that the buyer is obligated clear title or not I think this is a despicable way for banks to prey on inexperienced property buyers.

We're talking about REOs and I've never seen an REO contract that doesn't say that the buyer has a right to terminate if the seller can't provide clear title.

Of course, as Ned points out, if there is an REO addendum out there that requires buyers to buy without clear title, that's clearly an abuse and I'd be the first to start boycotting that bank.