Buying without Title Insurance and Quieting Title

8 Replies

Hello all, 

I am currently working with a client who recently contracted to purchase a property. Title has come back and it appears that the property was deeded improperly. The title company and its underwriters have decided not to provide an insurance policy for this property. I would never recomend anyone to purchase a property without title insurance 99% of the time but this situation from the looks of it seems to be that 1%. 

Here are the pertinent facts:

-The seller is currently in contract to purchase a property contingent upon my client purchasing her current property. 

-The seller has dropped the price of the property by 50k--30% of the orginal purchase price. 

-An attorney has provided death certs for all potential bloodlines and heirs of the previous owner.

-The current owner has been paying all bills and mortgage of the property for the past 20yrs.

-There is no record of anyone making claim to the property 

If you have any advice for me I would greatly appreciate it. 

Originally posted by @Anthony Villar :

Hello all, 

I am currently working with a client who recently contracted to purchase a property. Title has come back and it appears that the property was deeded improperly. The title company and its underwriters have decided not to provide an insurance policy for this property. I would never recomend anyone to purchase a property without title insurance 99% of the time but this situation from the looks of it seems to be that 1%. 

Here are the pertinent facts:

-The seller is currently in contract to purchase a property contingent upon my client purchasing her current property. 

-The seller has dropped the price of the property by 50k--30% of the orginal purchase price. 

-An attorney has provided death certs for all potential bloodlines and heirs of the previous owner.

-The current owner has been paying all bills and mortgage of the property for the past 20yrs.

-There is no record of anyone making claim to the property 

If you have any advice for me I would greatly appreciate it. 

Are the buyers paying cash? Even if you were going to advise them to buy the property with no title insurance, no lender will ever lend on a piece of property without a title policy. 

Have you tried taking the death certs and other evidence this attorney found to other underwriters? Often times title insurers have different standards. 

Personally I think it would would be malpractice for any fiduciary to ever suggest someone buy a piece of property with no title insurance there is too much risk. 

Can you describe what "deeded improperly" means in your scenario? 

Yeah, you haven’t said what the problem is....I assume it has something with inheritance issues.

The property was deeded to the current seller from the previous owner however the previous owner never signed the deed. The previous owner is and has been deceased. The deed was only signed by the current owner who was on title. 

I have received the death certs from the attorneys and have provided them to a few other underwriters and am currently waiting on responses.

I do not represent the buyer I just provide him with investment properties. I have never had this issue before without it being clear cut deed fraud.

Okay, if the previous owner “never signed the deed”, then how did he “deed the property” to the current owner? Answer.....he didn’t. Sounds like somebody may need to open probate and herd some cats.
Can’t see as how a QT would be appropriate as it seems the current “owner” has no “ownership” in the property.

From the sound of things, many years ago Owner1 and Owner2 prepared a deed intending to convey to Owner2 as sole owner. However, Owner1 never signed it and the title defect was only recently discovered.

The issue of ownership will either need to be litigated or agreed to. And since Owner1 is dead, even an agreement would require court involvement. Ugh.

The problem with the title of this thread is that Owner2 only currently owns 50% of the property. Nobody wants to buy 50% of this mess.

I will first talk to my RE broker see if he supports this kind of transaction as he is the person receiving the commission.  I will also consult brokerage lawyer for advice.

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