Six figure deal with title insurance roadblock

Six figure deal with title insurance roadblock

Verona, NJ · Member since 2016 · 6 posts · 2 votes

So I've been waiting to close on a parcel of unimproved property in TX so I can subdivide it. It will net a six figure profit if I can close it but that's the issue. Any help with this is greatly appreciated! 

Recently, the title company informed for that they could not insure the special warranty deed unless the sellers brother, who was an heir to an estate, along with the seller of the property, be involved in the transaction. They are brothers (who happen to hate each other) and their fathers estate was intestate when he died. The gentleman I've been dealing with was named administrator of the estate by the county court judge and he has the documents to prove it. He paid out of pocket to settle the estate. He has been administrator for more than a year now. 

I was under the impression that was the last step before being legally able to sell a property in an estate.

my title company is stating that the seller needs also an "order of sale" which I don't quite understand considering the court order specifically mentions that the seller, as administrator solely owns the parcel I'm trying to buy. 

If anyone has any real experience with this type of thing, I'm curious to know if this sounds like standard title requirements or an odd request. In my dozens of purchases I have never encountered this situation. Any help is beyond helpful and I thank you in advance!!

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Lender · Woodland Hills, CA · Member since 2013 · 362 posts · 115 votes
4y

Chase, i am CURRENTLY in a bare-knuckle legal brawl over my childhood home.  The fact that you can't currently get title insurance might just be a blessing. Lack of a title insurance policy means that there is a cloud on the title.  Without clear title you are GOING to inherit a lawsuit.  Best bet, talk to the estranged brother and see if you can bring them together.  Think that is too much work?  Buy the property without title insurance make it profitable and then get it taken away from you from the estranged brother that you stole it from him in a protracted lawsuit.  My 0.02

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  • Lender · Woodland Hills, CA · Member since 2013 · 362 posts · 115 votes
    4y

    Chase, i am CURRENTLY in a bare-knuckle legal brawl over my childhood home.  The fact that you can't currently get title insurance might just be a blessing. Lack of a title insurance policy means that there is a cloud on the title.  Without clear title you are GOING to inherit a lawsuit.  Best bet, talk to the estranged brother and see if you can bring them together.  Think that is too much work?  Buy the property without title insurance make it profitable and then get it taken away from you from the estranged brother that you stole it from him in a protracted lawsuit.  My 0.02

  • Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
    4y

    Title insurers are in the business of risk avoidance, not risk assumption so if there is a possibility of a later claim against the title, they will make a requirement to dispose of the issue prior to the issuance of a policy.  I assume their examination of the title found the brother's interest was not dealt with in a manner that satisfies them.  You can always take the closing to another agent and see if their underwriter makes the same requirement.

  • Greg H.Pro Member
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    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    4y

    I assume they were trying to close with an Affidavit of Heirship instead of going through probate?  The other brother is a valid heir and would need to sign regardless of the status of the brothers' current relationship

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    4y

    So why not call both Brothers separately and make sure they will sign.

    If you have a holdout, maybe a cash sweetener will do the deal...sometimes "Money Talks".

    Just my 2 cents.

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