Re: What is the risk? - Posted by Rich Hyams
Posted by Rich Hyams on July 06, 2003 at 22:15:30:
We did have a deal. She accepted my offer of 38.5, I signed the contract and sent it back to her, it went to her attourney and came back with an addendum that said that I would accept her “Special Warranty Deed” without objection.
I found out that she bought it at a tax sale…no, I knew that she bought it at a tax sale, but I was totally unaware of this ‘quiet title action’ and its need to get done. Luckily, I spoke with someone who told me about being careful with this with a person who bought at tax sale. After getting an idea of the title history and the number of heirs the original owner had and getting a ball park cost of 2k to do the quiet title action, I came back to her.
I told her that I would accept her title but now the offer is 4k less. I am thinking that because of the time involved, 9–120 days, I should have offered somewhat less.
My question for all you experienced people out there is:
If I accept her “Special Warranty Deed” that is not marketable and not insurable and begin the quiet title action myself and junior starts piping up and it turns out that someone wasn’t notified of something at the proper time during the tax-lien to tax-sale process and they actually overturn the tax sale or whatever it is that they would do, am I left with nothing but a canceled check?
Sorry if I wasn’t clear about that.
I know, I was talking about selling it before I actually had a fully executed contract, but many have told me, and it also seems to be a common belief here, that you should have an exit strategy before committing yourself completely.