Need help with Warranty Deed - Posted by osirus

Posted by TC on December 12, 1999 at 17:12:19:

Bud,thank you very much for taking the time to answer my post.

TC

Need help with Warranty Deed - Posted by osirus

Posted by osirus on December 10, 1999 at 22:52:08:

This morning I went to the recorder’s office to check the owners’ of record for a FSBO that I have a verbal offer excepted on. The warranty deed has my seller (as grantor) selling the property to two other people (as grantees) in December of 1982. But underneath the legal description of the property; the following is written:

“Grantor herein reserves unto herself a life estate
with full right of possession and control as long
as she shall live. Grantor reserves the right to
mortgage all interest in the property, including
the fee simple title, as long as she shall live.”

The above suggests that my Seller (i.e. Grantor) still has the authority to sell this property as long as she is still living.

I asked a title clerk who do I need to sign my purchase contract. She responded that I would have to get the Grantor and both Grantees to sign the purchase agreement.

  1. Is the title clerk correct?
  2. Assuming the answer to 1. is “yes”; is it probable that the two grantees will want a piece of want I agreeded to pay the oringinal grantor?
  3. What is the best way to deal with situation?

Tommorrow I am going to call the seller and ask her for information.

Any help is appreciated.

Re: Need help with Warranty Deed - Posted by Bud Branstetter

Posted by Bud Branstetter on December 12, 1999 at 16:46:17:

osirus,

While the title company has the say so this is what they were trying to tell you. Your seller does not have the right to sell the property. She gave up that right in 1982. She retained the right to live there. She also retained the right to mortgage the place. Of course if she did the lender would want her and the grantees to sign off on the mortgage/deed of trust. What would be my question is who has paid taxes and insurance. A title company would want to be conservative and to claim she still had the right to sell would take either their signature or a quiet title action. But why spectulate-let the title company tell you what they need to insure title. Until you find out more there isn’t much there.

Here’s what matters . . . - Posted by Joe Kaiser

Posted by Joe Kaiser on December 10, 1999 at 23:52:36:

Unless the title clerk moonlights as an insurer, what he/she thinks/advises/recommends is meaningless.

Your title insurer will tell you PRECISELY what you have there and will advise you EXACTLY how to do what you need to do in order for them to insure your new title.

The best way? Let the title company figure it out for you.

Joe

Re: Here’s what matters . . . - Posted by TC

Posted by TC on December 11, 1999 at 24:50:04:

Hi Joe.Will they insure title in a trust name or would it be the trustee name?

Thanks!

Re: Here’s what matters . . . - Posted by Bud Branstetter

Posted by Bud Branstetter on December 12, 1999 at 16:32:31:

If you are purchasing title insurance the title commitment will be made out to the individual as trustee. If you are selling and the buyer wants title insurance, expect the title company to want to know who the beneficial interest belongs to(and see the documents). As Joe says title companies are independent business so they can do whatever they want. Some are more particular than others.