Title Issue w/ DEA

Title Issue w/ DEA

Involved In Real Estate · Sugar Land, TX · Member since 2013 · 28 posts · 8 votes

Last November, I was trying to buy a piece of land from an older couple. They had bought the land at a tax sale and never bothered with checking the title. So I gave them a deposit and the rest would be paid at closing, which was supposed to be before the end of the year. The title company found that the title was tied up by the DEA due to a seizure back in the early 90's. It was originally several hundred acres with an airstrip that was seized. After the drug dealer went to prison, the land was sold to someone who split it into smaller plots and created a residential airstrip community. For some reason, the lot I was trying to buy had never been released by the DEA and so it does not have a clear title (figures). I even contacted a real estate attorney and was told that wasn't their area of expertise. Finally after 6 months I ended up just asking for my deposit back because there was still no resolution.

Does anyone know a way to clear this? I did get my deposit back but I am still interested in this property.

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

Find a RE attorney, that issues title insurance. They will be more used to curing these types of problems. If the lot was supposed to be released, it should be doable. I would think you can do most of the leg work yourself, and save some money.

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

    Find a RE attorney, that issues title insurance. They will be more used to curing these types of problems. If the lot was supposed to be released, it should be doable. I would think you can do most of the leg work yourself, and save some money.

  • Missouri City, TX · Member since 2013 · 28 posts · 8 votes
    13y

    Hello Alia,

    I am also new to the investment world and I also live in the sugar land/missouri city area. Right now I am concentrating in the area of mobile home investing. Keep in Touch...

  • John FedroPro Member
    Investor · Austin, TX · Member since 2009 · 413 posts · 295 votes
    13y

    Hi Alia,

    I hope this all works out for you. Keep us posted on the results. Good advice from Wayne B.

    best,
    John Fedro

  • Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
    13y

    The original post should be: 'Clearing title for fun and profit.'

    However, for many, fixing title involving the Federal Gov't has fewer opportunities to be either fun or profitable unless this become your "calling" in real estate.

    I've cleared title to many properties but never Federal Gov't tainted issues. My concerns center around unknowns: I have no clue as to what's required, the time involved or the cost of resolution. Without being familiar with the remedies required (quiet title, form XYZ, etc.) I have no idea what the attorney would be doing. When I take my car to the mechanic, I have a reasonable idea what labor and parts will cost ($1,200 for some module and $300 labor).

    Since I don't know your level of expertise, I'll lean on the conservative side and suggest that this deal goes on the back burner while you concentrate on opportunities with more obvious ways to exploit profit.

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