Dallas-Fort Worth Real Estate Investor Club

Title Policy can not be issued

  • 07 Jan 2013 3:53 PM
    Message # 1173756
    Deleted user
    I am looking at a property where "due to heirship issues, this property will not be issued a title policy but will be closed at the title company". Anyone know what this means? Should I walk away? Thanks!
  • 07 Jan 2013 4:48 PM
    Reply # 1173803 on 1173756
    There are too many deals out there to buy one that doesn't come with a title policy...  Have them explain what "heirship issues" are preventing a title policy.... smells fishy to me...
  • 08 Jan 2013 5:23 AM
    Reply # 1174156 on 1173756
    Robin Carriger (Administrator)

    I've done deals before with nightmare heirship issues.  I had to dig up death certificates from remote counties, get multiple, remote family members to sign affidavits of heirship, etc.  AND, because of all my hard work, a title policy WAS issued.  It was A LOT of work, but I got it done and made a nice profit.  It sounds to me like someone just doesn't want to do all the work that the title company has told them would be required before they'll issue a title policy.  I wouldn't walk away.  I'd RUN away from this deal!  With so many other opportunities out there, doing a deal without a title policy would be crazy.  In fact, even if there were NOT a lot of other opportunities, it would still be crazy to do a deal without a title policy.  BTW, it makes very little difference that the deal would be closed AT a title company if a title policy isn't issued.

    The only way I can imagine that you might be able to do this deal, and only if there's a BIG potential profit, is to offer to take over for whoever has it now, get the heirship issues resolved so that a title policy can be issued, and then buy it.  If they won't let you take control, move on to the next deal.

    Last modified: 08 Jan 2013 5:25 AM | Robin Carriger (Administrator)
  • 08 Jan 2013 8:55 AM
    Reply # 1174279 on 1173756
    Deleted user

    I had a piece of land purchased at a tax sale.

    The title company would not issue a Title Policy because I didn't own it long enough.

    The land was sold a year later with a Title Policy from Stewart Title.

    Last modified: 08 Jan 2013 8:57 AM | Deleted user
  • 08 Jan 2013 11:30 AM
    Reply # 1174382 on 1173756
    Deleted user
    Thanks everyone for your input and your help!
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