REO question! What does this Mean??!

[John S]

HI,

The following is on the REO listing sheet, what does it mean?? Does it mean that I can't wholesale it? This is from NJ.

"The Grantee(s)/purchaser(s), of Property may not re-sell, record additional conveyance document, or otherwise transfer title to Property w/in 60 days following the Grantor's execution of this Deed."

If I do a double close, does it mean that I can't record the title for 60 days? or my new buyer can't record the deed for 60 days? Do I have to wait til I record the deed before I can do the second close with my buyer?

Thanks!

[J Scott]

Originally posted by Chris Martin:

Yesterday, I received the title policy. No mention of any deed transfer restrictions. In the recorded documents, no mention of the deed restriction.

The restriction would be listed right on the deed, and should have been included by the attorney (or title company) who closed the transaction and created the deed that got recorded.

Assuming the deed had the restriction listed, it would be enforced by the fact that it would encumber title and a buyer wouldn't be able to get title insurance for the 90 day period.

Now, if the closer forgot to include the restriction on the deed (I've had this happen a couple times), it's unlikely that it would be caught during a title search and you'd likely be able to sell the property without any roadblocks.

That said, according to an attorney I've spoken with on the subject (when this happened to me), you'd still be violating the deed restriction, despite the mistake by the closer not to actually include it on the deed. So, the seller (FNMA in this case) would have recourse if they caught you doing this.

Of course, I'm not an attorney, so don't quote me on any of this, but this was the advice I received from my attorney in the past...