TITTLE ISSUES ON A MAJOR RENO FLIP

[Ivan Correa]

Looking to see if someone can assist with an issue on a property I purchased in 2020.

I bought a Heavy reno 1 family 25X100 property in NJ . Late February early March was when I closed. This was the second property we had closed on in the same period with the same attorney . This property was getting a lot of action I ran the numbers it would be a good flip so I offered below asking, cash, no contingencies, close in 10 days. It came down to three people I was told I could win this if I used the then owners tittle company so I said sure. Tittle was ran etc. My attorney at no point in time mentioned any tittle issues didn't mention any red flags said everything was ok so we closed. The world closed down I got covid some other family members as well so time passed by and I didn't get back to it until September- October (taxes were paid, lawn mowed etc.) We secured financing for the reno , in the refinancing portion of this when tittle was re-ran the lenders tittle company said they do no feel comfortable moving forward until these issues were taken care of. My attorney reached out to the tittle company that had insured it and he was told they would re-insure it no problem. I didn't feel comfortable doing all this work just to have a potential buyer's tittle company tell me this or force a potential buyer to use this company I don't know and obviously is not good. My attorney told me to file a tittle claim and he said it would take months , I tried to place it limitedly off market at a discount and cut my losses but no bites. A close friend with colleagues at a tittle company looked a the tittle search and said the following.

(my)llc =my company

PREVIOUS LLC = the company that owned before me

THE LENDER TO PREVIOUS LLC Inc.= The name of the fund that transacted with the previous owner and seem to have some sort of personal relation to each other.

NAME = the owner of PREVIOUS LLC

[Jay Hinrichs]

Originally posted by @Natalie Schanne:

@Ivan Correa - sorry to hear about your situation. Are you able to rent / Airbnb it furnished / staged while you file the claim? Or do a lease to own type plan? (Remember to disclose fully).

Will the title company pay your legal fees as part of your claim? If so, I would hire the respected attorney. I’m under the assumption that if you buy a property with title insurance and when you go to sell it, you don’t have marketable title, then you can sue title company 1, which should have alerted you of these issues and/or resolved them before allowing the deal to go through.

I have a friend who got a sheriffs sale property with unmarketable title and while he works out the problems, he is renting it for a good cash flow.

you need to by pass the attorney and make a title claim to the title insurer..  its unfortunate in these states that you blindly trust attorneys without reading your title commitment yourself..  but if there were no exceptions then that's what title insurance is for..  File the claim is what you should do forget the attorney.