What to do if title isn't cleared by contract closing date?

[Michael Finkelshteyn]

So, about 3 weeks ago I put $2500 earnest down on a duplex as a rental from a well established wholesaling entity in Houston. The property will be acquired in cash so I have no interest to pay.

The wholesaler is assigning the contract to me which has already been signed. Closing date is 9/14, which has already been pushed back once because seller has had difficulty clearing title. Apparently, the city has had a lien in place since 1978.

So with the closing date looming, what is my next course of action? I like this deal; the numbers make sense and I think there is a lot of upside. I break even on the lowest ARV price and I still make money with the lowest rent figures.

Obviously the deal will terminate if title doesn't clear, but if I still want the deal, do I sign a new contract?

Would I have to pay any of the taxes that have accrued over time (never mentioned in contract)?

Are there any "gotchas" in a situation like this?

I appreciate any feedback.

[Account Closed]

Michael,

If they can not located the contractors that have the lien escrow will hold the contractors funds in escrow and closed the deal and pay the contractors when they come calling.

Joe Gore