Title company wont close due to redemption right clause

Buying & Selling Real Estate
8yFollow

Title company wont close due to redemption right clause

Baraa Yassin
Garland, TX · Member since 2017 · 57 posts · 28 votes

Hi guys...hope all well...notsure if this is the right form to post.

I have a client that bought few lands in dallas, texas from the sheriff tax sale.

The redemption (6 months passed) 6 months because they are empty lots.

Got them listed for sale and undercontract...now at the closing when the title company issued the policy commitment...they want to add language says they wont cover the redemption up to 2 years...(per their under writer)

Even they know that the redemption right passed 6 months and its expired already but they say its their policy / some of them they want to add language for 4 years uncovering.

The 2 deals are gone now...im going to relist but was wondering if any recommendation of title company in dallas/texas that wont include this language in schedule C or in the entire commitment.

Your advise is highly apreciated

0Reply
21 views

7 Replies

Jump to latestLatest
  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    @Baraa Yassin     Are you using Republic Title?  If not I would suggest someone like Kathi Riddle at Republic Title in McKinney.  Since you have already had an issue talk to someone at the "Senior Vice President" level.  They should be able to open title and tell you a solution before you find another buyer.  Let me know if they cannot help I have some other people to suggest.

    0Reply
  • Baraa Yassin
    OP
    Garland, TX · Member since 2017 · 57 posts · 28 votes
    8y

    @Michael Biggs

    Thank you Michael, I will contact them first thing in the morning....hopefully they can help...yet I asked the republic title branch at turtle creek near down town and they said they try to avoid these kind of deals...hope the branch you mentioned can do something.

    Will let you know what happens

    Thanks again

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Account Closed  MIke I don't know how they work in Texas.

    but in CA when our family was quite active in this.. it was all across the board on what title companies would do,  even though in CA there is NO right of redemption.. First American would not insure for 5 years..

    but this is where relationships come in.. we were number one client at fidelity and they would insure us right away.. within days of the TAx collector deed being recorded  usually 2 to 3 weeks post sale. 

    if you walk in off the street and are a one off client.. I suspect they are not going to take any risk for a few hundred dollars in title and escrow fees so they will stick to their 2 year minimums.

    there is a company in CA I believe that specializes in insuring these..i checked into this on a lot I had in Charleston SC that I was having a hard time getting insurance for.. but when I read there policy it was clear .. no lender ( construction lender ) at least a bank would rely on it.. and I highly doubt a reputable mortgage lender would rely on that title insurance.. I think it probably works for rural I am going to use the property to go hunt and shoot my guns and ride my quads type of property.. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

    I’m guessing it has less to do with the redemption period than the statutory time someone can challenge the validity of the sale.....proper notices, etc. 

    Here, there is No redemption period but title is not “clear” for 4 years unless you do a Quiet Title action. 

    Check your TX laws. 

    0Reply
  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    I agree with Jay.  Relationships matter so do dollar amounts.

    I have not had a problem with the place I mentioned and did not think they were doing me a favor.

    In fact, they are not even the title company I would call if I wanted a favor.

    0Reply
  • Baraa Yassin
    OP
    Garland, TX · Member since 2017 · 57 posts · 28 votes
    8y

    @Wayne Brooks

    Thats right...there concern is the validity of sale and proper notices beforw the sale..totally agree...I will try because the seller is willing to sign any document giving the buyer or the title company garantee if someone comes back and redeem the seller is willing to pay back the title cost and refund the buyer.

    @ Jay Hinrichs

    @Michael Biggs

    Thank you guys for your input

    0Reply
  • Baraa Yassin
    OP
    Garland, TX · Member since 2017 · 57 posts · 28 votes
    8y

    @Michael Biggs

    No luck yet...can you help if you know other title companies you think I should try.

    Thanks

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free