An Mildly Interesting Event. - Posted by karp

Real Estate Investing
1

Posted by Lisa from Oz on April 16, 1999 at 21:49:33:

nt

2

An Mildly Interesting Event. - Posted by karp

Posted by karp on April 16, 1999 at 19:00:26:

Well maybe not THAT interesting, but here it is anyway…

I am in the middle of a deal and when I tried to get title insurance they said “NOPE, there is a 28K lien on the property.”

I was boggled. I went back and checked and checked and checked. Nothing. So, I went for the dollar amount and searched through the records until I found a Quit Claim Deed with a dollar amount next to it- $28K to be exact.

This is weird, I thought. So I printed the QC out and guess what some brilliant attorney had written?

“Quit Claim, Quit Claim, blah blah legal blah…
SUBJECT TO EXISTING $28,000 LIEN”

Now, here’s the skinny. Nobody had a lien on this and his info was bogus. Here’s what I did and will let you know if it works. I had the sellers sign a release of lien and had it refernce the QUIT CLAIM that was filed as if the Quit Claim was really a lien!

I think it will work. How weird. I was curious as to whether anyone has encountered a QUIT CLAIM that created a lien before?

Anyway, thats’ the most interesting thing that happened today. Sorry. lol.

Thanks,

karp

3

Re: An Mildly Interesting Event. - Posted by Rob FL

Posted by Rob FL on April 18, 1999 at 17:32:37:

We in the title insurance industry would call this a title cloud. It may not necessarily be a lien but it does create a concern that a possible lien exists for 28K.

As a title examiner for 7 years, this is what I would want to see in a perfect world. 1) an affidavit from the seller that the reference to the lien was a mistake and that no lien existed 2) an affidavit from the attorney or whoever prepared the deed stating the same thing.

Also, I would ask the title company’s underwriting department what they would require to be recorded in order to remove the lien.

Best Wishes.

4

Re: An Mildly Interesting Event. - Posted by Bill Gatten

Posted by Bill Gatten on April 17, 1999 at 18:21:18:

OK, now you’re messing with my emotions!

They can’t do this!!

Can they?

Bill