Due Diligence and 'Title Defects'… (Palm Beach County, FL)

Due Diligence and 'Title Defects'… (Palm Beach County, FL)

Renter · Lake Worth, FL · Member since 2014 · 29 posts · 8 votes

QUESTION: What information does/can a paid title search reveal that can't/won't be found relatively simply by searching public information on county websites?

BACKGROUND: So I'm considering purchasing property in a very specific geographical area (a few square blocks). I recently saw an MLS listing in my area of interest for a vacant lot/land described as having a "highly motivated seller" and "title defects" explaining the "low price." Obviously there is more going on here than meets the eye...

I searched on the county (Palm Beach) websites for information related to the property (GIS, Property Appraiser, Property Tax, County Recorder).  I found court records indicating BoA vs. current property holder on title & WashingtonMutual so I assume that is the title defect?

Would a paid title search (potentially) result in more details of the situation or would they just (potentially) find the same public records that I have for free?  Just curious… it seems to me that the 'owner' is trying to pawn this property off onto a land speculator?

I'm new to the due diligence process so am sure that I am missing something.  Thoughts?

@Wayne Brooks  Wayne, you're familiar with PBC and a wealth of knowledge here in the forums.  What's your take on my research process and the above situation?

-Jeff

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    @Jeff Kushner They find essentially what we can find,If we look on all the right places. But, the title co. Also searches by legal description, not just by name.  Sometimes they will misspell the mortgagee's name, and you don't find it searching by the correct spelling,  it's rare, but I've seen it, and auction bidders got a nasty surprise.  They also do a city/county lien search for currently I recorded debts....code violations, etc.  One call to the listing agent should reveal what they know.  What you described sounds like a foreclosure case, or two, if they haven't been released.  Your purchase contract will call for clear title, and if any problems pop up, you can walk away.  PM me the address, and I'll see what's apparent.

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