Investor · Seattle, WA · Member since 2015 · 30 posts · 2 votes
Hi,
I am up against a problem I have never encountered before. We put in an offer on a property that was accepted by the current owners. However upon the Title company doing it's thing, they have come up with a DOT back in 1995 that DOES NOT show it was paid. Also the person who carried the DOT is now deceased. While common sense says it likely is no longer open, the Title company can't go any further until the current owners find info. So we have been in limbo now for 2 months. We were gonna walk away, but I really want the lake property as it fits into where we want to retire & build.
I'm not sure, but isn't there some way a "Quiet Title" or something can be done by a lawyer & get this cleared up a short time? I mean the DOT is already 20+ years old. The property as it is worth only about $85-90k.
What would it cost to clear this up & how much time?
ANy help, pointer greatly appreciated - Oh this is in Washington State
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
If you're paying cash and willing to take the risk, you can buy with this potential DOT being an exception, not covered. A local RE attorney, or the title co., can tell you if a QT action would suffice there.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
If you're paying cash and willing to take the risk, you can buy with this potential DOT being an exception, not covered. A local RE attorney, or the title co., can tell you if a QT action would suffice there.
Investor · Seattle, WA · Member since 2015 · 30 posts · 2 votes
10y
Hi,
I am paying cash, but how does that clear up to problem? What if I want to sell 2 years from now, the same problem comes up. I am not even sure what quiet title is.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
10y
It doesn't. @Wayne Brooks means for you to buy the property and take responsibility to resolve it on your timeline.
I would take the deal off the market and tie it up. Then, I'd have a plan to get lender of record to release.
BTW, just because the owner is deceased and 20+ years have elapsed since recording does not have anything to do with whether or not the debt is still active.
Make sure you get tax ID info for the decedent do that you can fashion an authorization to release information.
Investor · Decatur, GA · Member since 2015 · 313 posts · 207 votes
10y
Most states have statutes of limitation on old debt even recorded liens. Quiet title action is just asking a judge to rule on the old debt and extinguish it. The court will issue a new deed with a court order to record that cleans up the title. Some states have authorities call Land Banks that have the same power as a judge to clean up title.