All Forum Posts by: Tom Gimer

Based on that language, there would be no contingency on the buyer side. You could have figured out the amount that would be the seller’s closing costs before making your offer. Seller is expecting to net the contract price. As to that language, here’s an example of how it could come into play... It turns out there is a $1000 water bill outstanding. Clearly that would fall on the seller side. The seller could elect to proceed to settlement and pay that bill, or they could void the sale.

@Steve Vaughan I agree with you on several points but fyi if an individual transfers a property from himself/herself to his/her single member LLC, the LLC would still meet the definition of "insured" under the standard ALTA owners policy. In other words, it shouldn't affect title insurance... similar to transferring to a trust for estate planning purposes. And the same goes for multiple owners who transfer from themselves to an LLC they own -- provided their membership interests are identical to their original ownership percentages.

Based on the lack of activity in this particular forum, it would appear there is nothing going on in DC. Can't be true.

Perhaps you're posting your questions/issues in another forum. Where would that be?  

First and best option, get a specific power of attorney prepared by title/attorney and pre-approved by lender. 

Second option would be to sign personally while out of the country.  Depending on where you'll be you may not have access to a notary. If so, the process requires an additional authentication. This of course is all happening while the lender wants the original, signed Note in its hands immediately. Add several days (or hundreds of dollars, or both) to get the loan package back to title. Nobody is happy -- funds may not disburse until this is all complete. With Realtors involved this gets to be even more fun. ;)

The "legal owner" was the owner of record... the one shown in the land records... the one you contracted with.

I would stop talking and let buyer, seller and title company sort it out. Any claim would seem to be against the "seller".

Read your contract closely, with a real estate attorney if necessary. 

Did you have any inspection or due diligence rights? 

What specifically did the contract say about the deposit and how it could be forfeited or released?

Most people aren’t going to fight it out in court over $1000... especially if they have failed to follow contract terms. Sometimes all it takes is a demand letter. 

You’ll only need a lawyer if they actually file suit. 

No reasonable attorney would file suit based on the facts you’ve provided. (There has been no suggestion that you failed to disclose latent defects.)

This is a bigger problem for the buyer’s broker. If the property wasn’t acceptable at the walk through, they should not have closed. 

Sounds like somebody just wanted their commission. 

Your tenants will be the youngsters and their child. Your guarantors will be the parents. Good luck.

@Wayne Brooks If wholesaler contracted with the owner of record, who later turns out to have obtained title illegally, it's not so cut and dry.

And further, had the title company followed the (claimed) contract terms and done back to back closings, wholesaler might have title insurance (and counsel) to protect him here.

@Al Pekerman You are right. That is a nightmare. Sorry. Time to hire an attorney.

This is most certainly NOT the title company's responsibility.  It is your responsibility to properly address the insurance proceeds issue in your sales contract.  Consult with/retain a local real estate attorney.