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Updated over 4 years ago,
Question on risks of purchasing before title has been quietened
BiggerPockets community -
I'm coming across a situation that's a first for me and was hoping that some of you more experienced investors could help me navigate through it.
The situation: I have an opportunity to purchase a 7-property bundle. The seller bought the properties through a deed tax sale a few years ago and the county transferred title to them via quit claim deed. The titles need to be quietened but the seller doesn’t have the money to do it right now. He needs to the contract to close first so that he can use the proceeds from the sale to pay for quietening the title. My agent says there is a local title company that is willing to issue a title insurance policy to support the close process (this would be before the title is quietened of course). Ideally the title would be quietened before closing, but it seems like the seller isn't able to make this happen.
My questions: Would I be opening myself up to any undue risk by pursuing the deal under these circumstances? Also, are there any creative ideas around how to minimize risk and/or generate some negotiating leverage here?
Thank you all in advance for any advice you can share!
Rob