Hi everyone, I have never done a deal but I think one just fell into my lap. The seller owns the property free and clear but there several liens on the property through the city, county, and for taxes which I believe I would have to take care of prior to closing. Can anybody help me on how to proceed with clearing the liens without leaving the opportunity for the seller to back out before closing? I have a couple consultations with attorneys next week but I really would like lock this in sooner if I can. Thanks
Once you go under contract, just make sure your Realtor includes the title record and off record title deadlines. These deadlines give the title company to do their due diligence and do a title search to pull up any liens or encumbrances on the property.
Title should balance this by closing, unless the seller will only sell the property as is. Let me know if you have other questions.
Investor · Charlottesville Virginia · Member since 2021 · 348 posts · 346 votes
3y
Hello Nick, the attorney that you talk to will be able to answer this question much better than I will but I do have some thoughts. First, what exactly are you planning to do with this property? I assume by the way that you have worded this question that you are hoping to do a low money down owner financed deal. Here is how I would structure this. You will have your attorney draft a purchase and sale agreement dictating the arrangement. Part of that arrangement will be that you will deposit the funds necessary to take care of the liens to a qualified escrow which will be distributed to the lien holders on the closing day. This way your seller is contractually obligated to follow through and the money is not sent to remove the liens until they hold up their end of the bargain and they have assurance that you will follow through because the money is with a qualified intermediary. Hopefully this is helpful!