Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago on . Most recent reply

User Stats

38
Posts
4
Votes
Dan Madden
  • Investor
  • White Lake, MI
4
Votes |
38
Posts

Covenant Deed from Fannie Mae?

Dan Madden
  • Investor
  • White Lake, MI
Posted

I just received the title work for a cottage I'm purchasing owned by Fannie Mae.  The cottage is located in Northern Michigan.  The Schedule B-1 requirements include this clause:

7.  Covenant Deed from recited owner to recited purchaser.

Ok - expected a warranty deed so I had to Google covenant deed.  I learned this type of deed is one of the 3 types that exist in Michigan.  What I've learned I did not like!  Who would?  The PA gives me 5 days to object, which I have no problem doing.  Wondering what other more experienced Fannie Mae buyers would recommend. 

In particular this information I googled has me somewhat concerned:

http://www.milawyers.net/60.question

Especially the part about the survey.  Thought about including a seller paid survey included in the offer but agent said they don't pay for anything.  So I walked the property lines as best I could with a measuring wheel.  It's good size - 1.67 acres, I'm 99% sure there were no encroachments.

The B-II Requirements includes a clause:  "Any encroachment, encumbrance, violation or adverse circumstance affecting the Title including discrepancies, conflicts in boundary lines, shortage in area, or any other facts that would be disclosed by an accurate and complete land survey of the land, and are not shown in the Public Records."

Will FM bend and offer a warranty deed?  Will they in fact pay for a survey?  I'm not opposed paying for it (the place is a huge bargain). 

 Any thoughts or suggestions are much appreciated. 

  • Dan Madden
  • Most Popular Reply

    User Stats

    23,418
    Posts
    13,509
    Votes
    Wayne Brooks#1 Foreclosures Contributor
    • Real Estate Professional
    • West Palm Beach, FL
    13,509
    Votes |
    23,418
    Posts
    Wayne Brooks#1 Foreclosures Contributor
    • Real Estate Professional
    • West Palm Beach, FL
    Replied

    As @Chris Martin Mentioned, most REO's are transferred by some type of non warranties deed.....not a concern as long as you get title insurance. The most frequent issue we have with seller/REO title policies though is here they don't search for non recorded liens...recent code violations, utilities, etc. and those exceptions are in the B exceptions. Surveys are almost always paid for by the buyer, if requested, and you should.

    Loading replies...