I guess I should have asked this first

[Dannyga 0]

hi

And thanks for you answers so far.

I assume then I should get the deal first and then check out the title and owner?

Thanks again

[MichaelC 160]

As a matter of routine, I do not run a title check each and every time I do a lease purchase deal. That will become a very expensive habit to maintain. There are other ways to verify ownership of a property which won't break the bank.

For example, have a look at the property tax bill. The homeowners names will appear on that. You can get this either direct from the homeowners, or from the county tax office.

Same with the mortgage statement. Who's name is on it? Or, ask the homeowner for a look at the deed.

[Joe Lee 0]

Besides checking the title for ownership, shouldn't you check the title also to see if they dont have, lets say, a $25,000 credit card lein . And I plan to check title AFTER I have a lease agreement signed. I added language to the agreement stating if the title check comes back bad, I have the right to void the agreement and have the seller reimburse me for the amount of the search UNLESS I wish to proceed say for example they owe a smaller judgement/lein, then I'll just "adjust" what they are asking for

 

One more thing, if the seller doesnt want to pay you back for a title search that came back bad, record at the courthouse what is called a Affidavit And Memorandum Of Agreement Concerning Real Estate. Then after filing that, you simply walk away from the deal and sometime in the future when that seller tries to sell their house, the agent or another investor will run a title search and that Affidavit will stop them dead in their tracks. They contact you, you tell them about how they didnt pay you back for the search (Lets say 150$) and now it's grown into 1000$ (or more )for you to release this affifavit. They'll say you're crazy, but legally you are in control of their title until YOU sign a release form.

 

Also, one more thing, only you sign this version of this affidavit, the seller doesnt know about it. I'll post the link below for you all to download it direct from my site.

 

I'm sure you all have a volly of questions about this, go ahead and fire away

 

http://www.mediaspeedbump.com/AAMOACRE.DOC

 

-Joe

[MichaelC 160]

Hello, Joe. It's been a while............where've you been hiding? Hopefully busy pursuing deals!

Yes, you can always check title for existing liens. As I have said previously, checking the title for each and every lease purchase deal you are considering becomes a very expensive proposition.

Doing a title check after the deal is signed up with the homeowner is one way to cut down on that expense.

This topic points out one of the reasons I love lease purchasing, though. It is the homeowners responsibility to provide clean and marketable title to the purchaser. If I am in the middle of a sandwich lease, that purchaser is, hopefully, going to be the tenant/buyer. If there is a problem with the title, that problme is going to be worked out between tenant/buyer and homeowner.

If I quickly assign or flip the contract entirely, again, title concerns are not mine.

One last thing.........depending upon the local County policies, you may not be able to record that document without a homeowners signature on it.

[Joe Lee 0]

Hehe, I'd like for them to show me the law that says I can't record that document.

[Guest Wes]

It's called Abuse of Process. Filing anything that can result in a restriction on the free alienation of property can subject you to substantial penalties. First, you have better have a contract of sale, signed by the seller in order to satisfy the Statute of Frauds of the respective jurisdiction. Then, when you say the title comes back bad, you had better be sure that it is truly bad and not just one examiners opinion as to a cloud on title. If you meet both of those tests and do file the lien, you are entitled to recover your actual costs plus a modest interest on that amount, as provided for by the individual state law.

 

First you find the property.

Then you sign the contract.

Then you do your property inspection.

Then you do the title search.

Then you do your property survey, if necessary

Then you get your financing together, if necessary.

Then you do the closing.

 

Wes

[Joe Lee 0]

By "contract of sale" do you also mean a lease option agreement as well as a purchase and sale?

 

Also, I need multiple opinions to make sure that the title is really "bad"? And how many opinions do I need?

 

Plus, if it's just a little cloud/judgement, I'd be happy to still work with the seller, as long as the seller drops the asking price accordingly.

 

Worst case scenario, I lose the 150$ cause the seller dont wanna pay and the title has a not so bad, but bad enough cloud on it.

[Gary-TX 0]

By "contract of sale" do you also mean a lease option agreement as well as a purchase and sale?

 

Also, I need multiple opinions to make sure that the title is really "bad"? And how many opinions do I need?

 

Plus, if it's just a little cloud/judgement, I'd be happy to still work with the seller, as long as the seller drops the asking price accordingly.

 

Worst case scenario, I lose the 150$ cause the seller dont wanna pay and the title has a not so bad, but bad enough cloud on it.

Sometimes, the title company will close right around the small cloud you placed on the title. It is better to have something signed by both parties, if you want to cloud the title.

 

I recorded a memorandum of lease option agreement, and never heard from the title company. When are they going to send me my check?

 

Gary-TX