All Forum Posts by: Calvin Ly

I made them aware of the situation when I left closing. It was not on the HUD/CD preview the day before. I did not want to hold up closing as it was already delayed over a month due to the buyer's bank.

Both the title company and the title insurance company I used when I bought my flip property refused to cover the cost I had to pay to clear a title issue that came up when I went to sell the property. The title insurance company said that my title insurance policy expired at closing when I sold the property. This title issue came up when the buyer's title insurance company found a 'Minor Mortgage' which the bank felt that was an 'open encumbrance' that 'effected merchantability'. The buyer's bank was not willing to fund until this title issue was cleared, and therefore, we could not go to closing. I was charged at closing for the issue to be cleared off the title. I feel my title insurance policy which I had to purchase at (buy) closing should have the covered the fee I incurred to clear at my sell closing. Anyone know how I can get my money back that I paid to get this issue cleared? Its not a huge huge amount but what is the point of having title insurance if they don't cover me when there is a title issue.

@ Greg and Tom 
Thank you for your replies. The house is located in Houston-Harris County. 2014 appraisal value was just shy of 200K and in 2015 it rose to ~382K. So I am guess a cap doesn't exist. Getting the title company to show me the tax certificate to see if that is of any help-doubtful. 

Hi All,

Is the seller responsible for property taxes that increase after the sale/close? The tax appraised value doubled to close to 400K. Buyer is requesting that I pay the prorated increase in property taxes. My belief is that the house was not worth or would appraise for this high value had I not rehab the property to the level that I did. The other thing is the tax appraisal value is higher than what I had sold the property for. What are my options? or am I responsible for the prorated increase in property taxes? House is in Texas and sold mid 2015. 

Thanks Joe B! My realtor uses the same company  I am getting the quote from with good results, claims and all. Good to get a consensus among the Pro's at BP! 

This is what I pulled up online:

If you are with an E&S carrier, it is probably because you could not be written through the standard marketplace. The reasons include:

• Your risk does not meet underwriting guidelines, due to age, losses, locations, or cancellation;
• Your risk is unusual and the standard market is not comfortable with it;
• Your risk is extremely large and the standard carriers do not have the capacity to insure it; or
• Your limits of liability exceed the underwriting guidelines for the admitted market.

If you are insured with and E&S carrier, you will have to sign a disclosure form. This means that you understand that, if your carrier becomes insolvent, you are not protected by FIGA. The reality is that this possibility is extremely remote, although it can happen. You should pay more attention to the company’s financial strength and ability to pay a claim, not whether it is an E&S carrier.

Has anyone worked with Surplus Lines Insurers for home owner's insurance policies or builder's risk insurance? What are the positives and what are the negatives?

So I decided to do a full reno and resale. Not going to rent this one unfortunately. I want to thank both of you for your replies. I agree with Kevin though that most should go through a full reno and rent. Unless you are renting in an area where that is a high chance the tenants will not take care of the place. 

Would you guys recommend a full rehab as if flipping the property if you were going to hold the property for say 1-3yrs. I am possibly renting it out during the hold period and concern if I do a full (flip) rehab, renters might not leave house in good condition. So would you guys do two rehabs, first for rent ready and the second for resale after 1-3yrs? Or just full rehab at the start and just touch ups just before resell? Which is more cost effective?

Simply, No! Move on. From what you have described he is not acting in your best interests, just his commission. Don't deal with people that just think and do things for the short term and not the bigger picture.