Title Issues - Department of Revenue

[Ivan Mendoza]

Hello BP Friends, 

Hello Everyone! Wanted to ask the group for some helping regarding a deal I'm working on in Franklin County, NC. The attorney who is running title on a property I'm trying to buy came back stating the title is under the sellers company name. Apparently that company had its authority to operate in North Carolina revoked in 2003, at the direction of the Department of Revenue and that this type of action by the State means that the corporation cannot legally transfer ownership of any property. However I was able to look up the deed myself and discovered that the property title has already been transferred from the company/corporation to the seller name (company owners name), back in Oct 2021. The new deed is a Warranty Deed. Additionally I called the seller and confirmed there is no freeze on their assets. Since the property is now in the sellers name and not in the company name and they have a Warranty Deed as of 10/21, does the attorney comments have any bases to not transfer title to me?

[Chris Seveney]

@Ivan Mendoza

Just because they did transfer it does not mean it was legal. I have seen warranty deeds issued without title insurance which just means the seller warranties it but warranty can be useless

Title report should have noted that last transfer and need to see if they had title insurance

My recommendation would be to use that company to do this transaction if your closing agent is still giving you a hard time