And the rest of the story is… - Posted by Jim FL
Posted by Jim FL on December 27, 2005 at 12:48:08:
There seems to be something missing here.
I read the entire thread, and tried to see if I missed something along the way.
I did not, because it was not posted.
So, here is my question…when did the seller get this judgement levied against them?
Was it BEFORE you bought their house?
If so, then yes, it most likely attached to the property, and came along with the title, therefore you were forced to pay it off to get clear title to pass to your buyers.
IF the judgement was granted by the courts AFTER the sellers sold the house to you, no matter what method you used to take title, then yes, it’s time for a new title company.
Others have sent you toward Chicago Title, this is where I’d send you as well.
Aside from that, get yourself a good RE attny to represent you at closings, and make sure things go as planned.
Educate them if need be, and remind them constantly that they work for YOU.
The other thing that comes to mind, did you at the very least perform a title search on the property? (not your own, but pay a pro to do it?)
Obtain title insurance when you purchased?
That would have shown the condition of title, and all encumbrances.
Bottom line, sounds to me like title was not checked properly, and the lien was in place when you purchased.
The good news is that you followed the golden rule of buying right in the first place, so that lein did not prevent you from making a nice profit anyway.
The thing is, what if it was larger, and you lost money?
Next time, check title, and use your own attny to close when you sell.
Like I said, something is just missing in this picture. I’ve done my fair share of subject to deals, and NEVER had anyone attach anything to a property, once I’ve bought it, without my consent.
By the way, you mentioned in a post here that this has happened to you twice on subject to deals?
Sounds like there is surely something missing in your buying process.
Perhaps if you laid out, in detail, your actions taken to acquire the properties subject to, we can see what/where went wrong?
I see no issue with how you took title, using a trust, a third party trustee, and the beneficial interest assignment to you.
Whatever WAREIA said, disregard, they are on a kick for a different product/method for buying subject to, and dead wrong. Your process was right, just missing a piece along the way, in my opinion.
So, do tell, and we’ll see what you are missing.
I’m still betting it has to do with the title research or lack-thereof during the buying process.