to buy a property with no attorney ???

Question

I found a little store front for sale and have worked out a deal to trade the owner a old utility truck I have and a $1000   I have all ways use attourneys and had title insurance and what not but his atorney is saying that it will cost him 3k in crap so he is balking, I could be wrong but wouldnt just going to the county recorders office and filling out a quit claim deed make me the new owner?  taxes are current.  I realize i wont have titile insurance and if he wasnt the owner im screwed but would that actualy work?  what am I missing?

Ned Carey · Answer

I wouldn't even consider not using an attorney. How do you know you are not buying a liability without a title search? There could be lawsuits, court injunctions, and debt against this property. You don't know what you are getting into.

On the other hand if his attorney is telling the seller that it will cost the seller $3k to transfer free and clear title, that is a red flag right there.

If the cost of an attorney doing a title search and completing escrow or settlement is enough to keep this from being a good deal, it wasn't a good deal to start with.

If the issue is you don't have the money, find a partner or private lender. It is such a small amount of money you are taking about ti shouldn't be hard to find someone to fund it if it is a real deal.

Ned

Ryan Scritchlow · Answer

I have a meeting with a local title company on monday aboud seeing if they can do a title search, provide title insurance and handle the closing, that way we can keep both parties costs down as low as possible while still protecting me, I should know more tommorow. I will post what I find out as they said they normaly dont do that as each party has their own attourneys normaly.

Ann Bellamy · Answer

I can't even imagine not having a title company or attorney (depending on the state) do a title search and getting title insurance.  If the property is worth enough for you to give a truck and $1000,  (which is tiny dollars, admittedly) then isn't it worth checking to see the headaches you might be taking on.

After all, if he's willing to let it go for so little, isn't it possible there are serious issues with title?

Imagine if those issues are environmental, which is another problem altogether, and won't be covered by title insurance.

Either way, taking on someone's problems without knowing what they are is not my idea of a inexpensive investment.

Andy Chu · Answer

If you want to play risky here it goes. I know BP memebers are going to balk at this idea. Your county recorder's office gets chain of title for free. You can ask them how to read what you are looking at, and sometimes they are helpful. Also, a transaction history can also be read by utilitizing title companies that give out freebies to help out investors such as www.titleprofile.com

Like I said, these are not perfect and by no means the best route to go also, I know your interests are far from protected. However, most liens on title will show up (except for unrecorded liens). Is this worth the gamble?

Ned Carey · Answer

Ryan Scritchlow I don't know about in IL, but In Maryland one title attorney takes care of all the title work. Who pays is subject to what you can negotiate. Again in Maryland the recordation and transfer taxes are split 50/50 unless the contract says otherwise. The Buyer usually pays for most of the other title work.

I have bought properties without title insurance but not without a title search.

Regarding the rezoning. You could make the sale contingent upon you getting the rezoning you desire. You could even set settlement date as 60 days after you receive the rezoning.

You might give the seller your old truck as a deposit. Apply for and receive the rezoning you require, and find a buyer for the rezoned property before you even settle. The end buyer comes up with all the costs to settle.

All you come out of pocket for is your truck and receive a big payment from the end buyer at settlement. Theoretically could even get the truck back if the deal doesn't go through.

Wow I wish you were closer, I'd offer to partner with you ad help you make it happen.  - Ned

Ryan Scritchlow · Answer

thanks for the tips after doing some looking wouldnt me hireing a title insurance company to insure the title and have him hire the same ones to prepare the title be a cheaper alternative than us both hireing atourneys and a title company?  I have no use for this property and its a bit of a gamble in terms of zoning so I want to invest as little as possible,  I just like the rezoneing process as its alot of fun dealing will all the crap that comes up so  if I get my zoning Ill make a killing, if I dont Ill just donate the property to my church as I have no use for it.  ive never not used my attourney but ive also never bought a real property for $3500 either :-)

to buy a property with no attorney ???

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