Title Search is a must.
If you are buying a foreclosed home, you will not be responsible to pay for the liens and would receive clear title at closing.
In reference to violations, building issues. If there are Code Violations and they are on record, you will not be able to close until those violations were corrected. Clear title will not be issued.
Besides liens and violations, I'm running into instances where the title companies are charging the state/county and if applicable, city transfer tax stamps to the buyer, regardless of who is supposed to pay them. REO sales contracts often contain little time bombs that say they are "exempt" from paying tax stamps...and if they are charged, they belong to the buyer. In some cases, this can add some considerable heft to your closing costs, so beware. And if you're out there in the 'burbs, also know that a lot of towns are piling on fees and inspections at time of sale.
Info regarding transfer tax stamps: state, county and municipality and links to info for each; great site provided by Chicago Title.
Let me know if you would like to talk further, I'd be happy to sit down and talk with you about your plans/goals and how I could help you achieve them. firstname.lastname@example.org 312-399-6729 remax 2000
If you are buying a foreclosed home, you would not be responsible to pay for the liens and would receive clear title at closing.
With respect to violations. If these are City of Chicago Code Violations and they are on record, you will not be able to close until those violations were removed as title would not be issued. That being said, the violations could be handled different ways. If they were health and safety issues, my experience is that the bank will remedy or issue a repair credit that would be held in escrow by the Title Company; or if the violations were minor, I have seen it where the City of Chicago has removed these minor infractions because it was specifically because the property was vacant and the City wanted to gain access. Allbeit, the bank may not pay based upon your net selling price and hence, because of said selling price, you may be responsible for remedying the violations prior to close. But, I have yet to see a bank let the purchase have access into the property to remedy a violation without a $1M policy to protect the Banks' interest and something in writing by all parties concerned. That happened only on one file. So, the answer varies based upon the circumstances of the violation(s).
I, myself, always check with the City of Chicago or the municipality to see if there are any existing violations on record prior to writing the offer. Good practice to have.
Barb Van Stensel
Keller Williams LIncoln Square
2156 W. Montrose
Chicago, IL 60625
Depends on how you are buying the home. If you are buying from the lender, a REO property, then whatever is negotiated and accepted for a purchased price is the only amount you will pay. Many times with a foreclosed property,, appliances have been removed, light fixtures missing, toilets and sinks missing, make sure you understand what comes with the property and get inspections.
Good Luck to you
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