Re: Title Company ignored recorded Memo of Agreement and issued title insurance policy - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on March 16, 2000 at 22:07:17:
Hi Irwin, the title examiner probably didn’t pickup your Memorandum because it ‘fell in the recording gap’. That means that there is a lag (of 4-6 months in Atlanta) between when you record/file a Memorandum (or any deed) and when it actually ‘pops out’ in the actual Deed Books. This period can be from several days to several weeks to several months.
This ‘gap’ is covered at closing by a document/Affadavit that the Seller signs warranting that they have not done anything to effect their property during that gap in time (no other liens, judgement or contracts).
So your Memorandum was recorded but didn’t show up in the Deed Books by the time the title examiner went to check them. Now, the atty is probably annoyed because he sees that the date you recorded it is around when the Seller went under contract with her new Buyer. So I’m guessing that the atty thinks you did this out of spite because you ‘lost out’ to another investor.
What we ALWAYS do that helps prevent this: the DAY we get a house under contract we record that Memorandum ON EVERY HOUSE. And yes, it has earned us some money from devious sellers that have tried to sell it someone else–the seller or buyer then had to ‘pay us off’ to remove our Memorandum (if we chose not to go through with our purchase).
Best of Success,