Can I Sell House To End Buyer If I Have A Indemnity Agreement?

[Lee Bailey]

Good evening. I have a situation in Birmingham Al. I'm purchasing a house from a seller that has owned the house for 20 years. Title work came back and there is a break in the chain of title from 1978 to 2003 which is when the seller bought the property. But when the seller bought thee property back in 2003, seller was able to get a FHA loan on the house and still has a current mortgage on the FHA loan. Title company suggested that we install and Indemnity agreement so that we can get this deal close. That's covers transaction now. But I'm concerned about the future. My concern is this, if I buy this property, rehab it and put it on the market, am I going to have a problem when its time for me sell to a future homeowner? Is there anything that I can install now in the closing process to make sure I don't have a problem when it hits the market? Thanks