Interesting closing process

3 Replies

As many veteran real estate investors already know (and many new investors like myself will soon find out), things don't always go as planned in real estate investing. We are in the process of buying our 1st (technically 2nd because we did Airbnb with our first home) investment property. We are buying a SFH in Detroit to rent out and become landlords. We have gone through the whole deal of finding a property, running the numbers, getting financing, ect. and were set to close tomorrow (target date for all parties).

Turns out, the house we are trying to buy is 2 properties (one with house and the other with land) which is why the yard is so big. And the title of the 2nd property doesn't have the owners name on it. They bought it and have the deed but they didn't get their name on the title.

So the title company is saying they need to combine the properties and put them under one address (one parcel #) and one name on the title before they can sell it to me. They are saying it will take 30 days to complete this. 

Anyone have any experience with something similar is welcome to share, or just any thoughts in general are welcome.

Excuse the gramer, I am writing this on my phone.

Originally posted by @Kwame Searcy

...Turns out, the house we are trying to buy is 2 properties (one with house and the other with land) which is why the yard is so big. And the title of the 2nd property doesn't have the owners name on it. They bought it and have the deed but they didn't get their name on the title.

So the title company is saying they need to combine the properties and put them under one address (one parcel #) and one name on the title before they can sell it to me. They are saying it will take 30 days to complete this. 

Anyone have any experience with something similar is welcome to share, or just any thoughts in general are welcome.

If you want to avoid the hold up I would close on the properly titled property with the title insurance and buy the separate lot in a different transaction. There are benefits and negatives to both ways of doing it. The orphaned lot is 10 times easier to get the assessed value lowered on for property tax purposes than if it becomes part of your more valuable property. Then combine them at a later date into one parcel if you choose to do so.

Agreed, no need to "combine" the lots.  The dee could be recorded,mother immediately sold, unless we're missing something.

Originally posted by @Richard Dunlop :
Originally posted by @Kwame Searcy: 

...Turns out, the house we are trying to buy is 2 properties (one with house and the other with land) which is why the yard is so big. And the title of the 2nd property doesn't have the owners name on it. They bought it and have the deed but they didn't get their name on the title.

So the title company is saying they need to combine the properties and put them under one address (one parcel #) and one name on the title before they can sell it to me. They are saying it will take 30 days to complete this. 

Anyone have any experience with something similar is welcome to share, or just any thoughts in general are welcome.

If you want to avoid the hold up I would close on the properly titled property with the title insurance and buy the separate lot in a different transaction. There are benefits and negatives to both ways of doing it. The orphaned lot is 10 times easier to get the assessed value lowered on for property tax purposes than if it becomes part of your more valuable property. Then combine them at a later date into one parcel if you choose to do so.

 The path forward is to just close on one property and pay a dollar for the deed to the other lot separately. I was thinking about combining them at a later date once I own both plots.

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