"BUYER UNDERSTANDS AND ACKNOWLEDGES THAT THE PROPERTY MAY BE ENCUMBERED BY MECHANIC’S OR MATERIALMEN’S LIENS OR OTHER LIENS, JUDGMENTS OR ORDERS RESULTING FROM ALLEGED VIOLATIONS OF LOCAL ORDINANCES AND BUYER IS TAKING SUCH PROPERTY SUBJECT TO THOSE LIENS, WHICH MAY OR MAY NOT IMPACT BUYER’S ABILITY TO OCCUPY OR TRANSFER THE PROPERTY IN THE FUTURE."
This was an online auction purchase at a great price. I got it under the reserve price. Title insurance can't help me in this situation, can it? How would you approach this situation?
If you buy a property with that contract provision, you provide a deposit, then your title company turns up a bunch of those liens on the property, then you refuse to buy the property as a result of those liens, your deposit is history.
I would have a title company research it before providing a deposit. Or not buy it.
You’re walking into a mess....how much you won’t know until you research all the liens/problems.....obviously, something it would be better to do before bidding.
I wouldn't have bid unless I know what those issues were. Yes title insurance would cover those issues but you will only get title insurance by paying all the bills that the title company finds.
I believe one of the reasons banks use online auctions is very few people actually read and understand the terms.
Title insurance won't help you here... other than identifying the problems that you inherited.
Since you are already the high bidder/buyer, just hope that there aren't any real title problems and next time do your research before bidding. What you provided is standard CYA language that puts the burden of research on the buyer prior to bidding. It doesn't mean there are problems, it just confirms that if there are issues they are the high bidder's to deal with.