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Updated over 4 years ago on .

User Stats

11
Posts
4
Votes
Marcel K.
  • Real Estate Agent
  • Franklin, WI
4
Votes |
11
Posts

Buying a wholesale deal with with a memorandum agreement lien

Marcel K.
  • Real Estate Agent
  • Franklin, WI
Posted

My buyer is under contract on a wholesale deal for almost a month now. Today we found out the property has a memorandum agreement lien on it . Supposedly a brother and a sister own it, but only the sisters name is on the title, so brother filed the lien. Title company’s underwriting is  allowing to insure it, and will be holding all proceeds until courts figure out who gets what from the sale, which could take a long time. This will be a buy and hold but title company said if buyer tried to re-sell, ONLY that title company would issue clean title to new buyer, no other title company would...

Anyone ever experience situation like this ? This is a first for me, and obviously I want the best for the buyer. They don’t have an attorney yet btw.