All Forum Posts by: Peter Walther

I suggest you write up a contract with your seller and take it and your GFD to a local title agent.  They'll produce a title commitment with the requirements they think are necessary to get you insurable title.

I believe in Florida, HOA liens have priority as of the recording of the declaration of the restrictions except for first mortgages where the lien has priority as of the recording of the lien. (Fla. Stat. 720.385) So if the junior lien holders were properly served, their interest should be extinguished. However, as Jay suggested, ask a title agent for a commitment to issue you a policy and see what they would take exception for.

 You're welcome.

Assuming your corp received a title policy when it acquired the property, you could go back to the attorney or title agent that handled that closing and ask them 1. can they prepare the deed; 2. can they issue an endorsement to the policy changing the name of the insured to you as the Grantee.

This is the trouble HELOC lenders got into by not getting a traditional title policy.

BofA Sues First American Over Title Insurance Claims - MortgageOrb

I suggest you start by reading the insurance policy, starting with the definition section which should tell you who is insured.  I'd also carefully read the section on how the loss payment is made.

I agree with Don that acquiring an interest in property without a title policy is short sighted.  However, I just checked a national underwriter's manual, and it appears CD's are insurable, but there are criteria unique to them.  I suggest you check with a local agent to ask about getting a policy in your situation.  Many people are unaware of the limitation of liability if they get a title search, and something is missed.  Personally, if I relied on one, I'd assume I'm self-insured if something is missed.  Keep in mind that if you want to get a loan while you're a contract purchaser your lender will probably not be able to get a title policy since you don't own the property and cannot put a lien on it.

Also, since you'll need a deed from your seller when you're ready to resell, what do you do if he's in the wind since he's already been paid in full?

You don't "need" title insurance (as in it's not required in order to purchase property) but as you've read in this thread, it's highly recommended.  I can't foretell the future, but I suspect the requirement for the information from your grantors will probably be a onetime thing. The next examiner will see the title has been insured and unless another defect is found, will rely on your sale transaction.  You wrote (One of them told the escrow lady to go f off he wasn't giving her the information and she just informed me (as snooty possible) that she would not be able to close without it).  Seems a little sensitive to me since I suspect she's just doing her job and isn't trying to hold your deal up unnecessarily.  She may have also been a little annoyed that your grantor just told her to f off.  Nowhere did I write that title companies are great, in fact I'm more aware than most that they're just people in a particular business trying to make a buck.  They're not trying to save the world or salvage your investment.

I suggest you be sure to give the good faith deposit to either an attorney or the settlement agent, never to the seller.

I'm a little concerned that the seller is your neighbor.  Please consider that negotiations between the buyer and seller can sometimes become adversarial.  If this is someone you and/or a member of your family might be dealing with in the future it may be smart to have someone as a buffer.  Let's say your inspection comes back and identifies some matters that concern you, but your neighbor feels are inconsequential.  Let's also say your daughter and your neighbor's daughter attend the same 1st grade class and will continue to do so after the sale closes.  it might help to be able to point to your real estate agent as the unreasonable person who won't let close without resolving the issue.

Once a title policy is issued, if there is a covered problem in the future, getting corrective documents or bringing a quiet title action becomes the insurers problem, not the insured's.