Question Details

Larry Brake, Real Estate Pro in Aurora, CO

Anyone else having Seller's title issues that prevent deals from closing?

Asked by Larry Brake, Aurora, CO Wed Mar 26, 2014

For the first time in 10 years, I've had 2 listings go under contract back to back recently, only to find the Seller had title issues. From now on, I will have the title company provide preliminary title info before listing, but I am curious is anyone has experienced this recently.

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Answers

6
I have one awaiting resolution of a foreclosure that took place two owners ago that was not processed right and the lien was not properly removed. The former lender took a bath on the foreclosure and is now trying to milk a few $$$ out of the current sale to get themselves closer to whole. Given the mass wave of foreclosures that took place a few years ago, I have to believe there are more like this that will surface in the future.
0 votes Thank Flag Link Fri Mar 28, 2014
Tons of title related issues! Open permits, code violations, fines, liens, you name it!

My last one, a property that was recently foreclosed, has no parcel number as it was united in title to the neighboring lot (part of all the creativity during the boom). The Lender has spent thousands to get the issue resolved per City of Miami instructions and still getting nowhere...
0 votes Thank Flag Link Thu Mar 27, 2014
Thankfully we have not had any issues with title. (Knocking on wood)

We also do preliminary title work with our listings just to make sure we're good there.
0 votes Thank Flag Link Thu Mar 27, 2014
Just closed one that the legal description was incorrect-had to get an attorney involved to get it cleaned up.
0 votes Thank Flag Link Thu Mar 27, 2014
I had it happen recently where I was on the buy side. We brought an offer only to realize that the title was a disaster with TONS of issues that apparently no one was aware of in the beginning. Of course the listing agent was extremely embarrassed. Not at all her fault, but it was a good lesson for both of us to find out as much as we can as early as possible!
0 votes Thank Flag Link Thu Mar 27, 2014
Hi Larry,
I always pull Title as soon as I am convinced I'm getting the listing. The sooner issues are uncovered, the easier it is to address them. I have had flags come up, but I haven't had one kill a deal yet. Sometimes sellers forget what they signed, or never understood they approved a lien on their property.
0 votes Thank Flag Link Wed Mar 26, 2014
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