Cloud on Title

[admin]

I’m in the process of buying a property which is in escrow.

Today the realtor calls me and says the title is not marketable.

Some investor bought the property out of foreclosure and there’s a cloud on title. I talked to the Title Officer and she said it’s up to the seller to take quiet claim action to clear any issue.

I think that I’m getting a good deal so I’m willing to be patient.

Do I have a contract and is the seller obligated to do whatever it takes to give me clean title?

[UCGal]

I don’t think the seller is obligated to clear title. But the seller won’t be able to **SELL** till the title is clear.

I’ve learned this the hard way – extended family jointly owns a dilapidated vacation property in another state than where most of them live. It was never transferred out of their parents name in probate – so it’s titled in the name of a woman who’s been dead almost 40 years. The folks involved are either dead (3 of the 5) or ready to die (the remaining 2. 2 of the dead folks had wills that addressed the share – the 3rd died intestate and the various parties that would inherit refuse to sign anything.

They’ve gone into escrow twice – but can’t get clear title to sell it. Probates are being held up, folks in their 80’s and 90’s are squabling about it. Cousins are taking their parents sides… It’s a mess.

The property that will never be sold.

[FlyerInHi]

Yes, I can’t compel the seller the provide clear title if the cannot do it.

Now comes the question of damages.

If I were unable to perform my end of the bargain, the buyer would keep the EMD as liquidated damages. I kinda feel I’m entitled to the same amount because of his lack of performance.

Anyway, we shall see.

[NotCranky]

If it’s not in writing you are not entitled to anything out of escrow.

You could try arbitration, but I don’t think you have much ground to stand on.
You or your real estate agent should at least make a cursory check into title before you go to escrow. Maybe you did that?

If you wanted the property despite the defect the seller would have to perform or breach the contract.

What is the specific problem with the title anyway?

[FlyerInHi]

Yes, you’re right blogstar.
But I could sue for actual damages (if I had any).

Anyway, I think i’ll just take my deposit back and walk away.

The property is owned by an investor who owns a whole portfolio. This is a HOA foreclosure and the lenders still have liens. I was told the seller needs to notify the lenders and to go court for quiet claim action. I can take up to 2 years.

[Anonymous]

Read my dream community where 2 br original 400k units that dipped to 260k in 2009 and last year were 415k are back down due to homeowners lawsuit about water or piping in homes developing leaks. Stated no bank will touch it until settled, True?

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aliii

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