• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Real Estate Investment Question

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

sgara

Junior Member
What is the name of your state? Florida

I have been speculating in land for a couple of years now and own Warranty Deeds to 4 lots of various acreages in both New Mexico and AZ, all from seemingly reputable Sellers. What I wanted to find out is how if possible, can I try and obtain title or insurance on these properties. It also seems there is much controversy about the real worth of these parcels especially now since we are all in a RE downturn market. My parcels are in Valencia County and Taos for New Mexico and a couple of parcels I have in AZ near the Grand Canyon. Yes, they are all "scrub-brush" now but who is to say that 10-20 years from now, more development would push prices up? It's inevitable with the US having some 300 Million Citizens...everyone needs a place to live, right? :-)

I'm a "bottom fisher" and truly believe this is the best time to gobble up some cheap land, more even if can be afforded. I want to find out though some prudent legal advice whether this is the smart thing to do or whether I just stick to the stock market or something else.

Please email me with good helpful advice at: stevengara1@yahoo.com

Thanks in advance,

Steve
 


So you weren't getting title insurance at closing while you were "gobbling up" these properties? Bad move. Sounds like you have some fears that the warranty deeds may be less reliable than what you thought and you now want a title insurer to step in and and give you insurance after the fact. Bottom line: Not likely. The title insurance, if obtained as part of your purchase, would have been a process whereby the insurer would have examined all the land records to then determine if they actually would issue a policy. If they'd uncovered a defect in the chain of title, you would have been informed; they would not have insured you. You can either wait until you sell the land and either hope the buyer is foolish enough to not get title insurance, or that his insurer finds that the chain of title is clean and will issue a policy for HIM, not you.
 

sgara

Junior Member
Reply

Yes, but these lands were obtained through Ebay and most RE on Ebay even by reputable sellers do not readily have Title Insurance. What's a person to do? I haven't had any issues reselling properties to other buyers on Ebay either and never have gotten Title.

Can the county simply do a search and "certify" that all is clear from liens and encumbrances?
 

sgara

Junior Member
Title Insurance

So you weren't getting title insurance at closing while you were "gobbling up" these properties? Bad move. Sounds like you have some fears that the warranty deeds may be less reliable than what you thought and you now want a title insurer to step in and and give you insurance after the fact. Bottom line: Not likely. The title insurance, if obtained as part of your purchase, would have been a process whereby the insurer would have examined all the land records to then determine if they actually would issue a policy. If they'd uncovered a defect in the chain of title, you would have been informed; they would not have insured you. You can either wait until you sell the land and either hope the buyer is foolish enough to not get title insurance, or that his insurer finds that the chain of title is clean and will issue a policy for HIM, not you.

Yes, but these lands were obtained through Ebay and most RE on Ebay even by reputable sellers do not readily have Title Insurance. What's a person to do? I haven't had any issues reselling properties to other buyers on Ebay either and never have gotten Title.

Can the county simply do a search and "certify" that all is clear from liens and encumbrances?
 
You seem to have a fundamental misunderstanding about title insurance. Sellers do not provide it or HAVE it...buyers get it to protect themselves. I'll ignore your reference to buying RE on EBay. As to asking the County to do a search, that's not the way this works. They maintain the records; it's up to you, or someone you hire, to search them. That's what title companies do all the time. You could hire a lawyer to do searches, assuming you don't want to do it yourself (not a job for an amateur). But you are not going to get any kind of "certification" that your title is free of encumbrances. That's what title insurance does. They look for apparent flaws, and finding none insure you against any future flaws that may limit your ability to sell your property or prevent it from being claimed by someone else. You are literally trying to get insurance after the hazard is known or suspected. You can't buy fire insurance while your house is in flames, nor likely get it with piles of newspapers around your furnace. With title insurance, not all defects are in the records; there may have been fraudulent or unrecorded issues that would only surface if current ownership of a piece of property came into question. You are at the mercy of the unknown and without protection. When time comes to sell, hope for the best.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
Top