Are you looking at a house to purchase AND the house has an existing tenant? If you’re thinking that you can just evict the tenant so you can move in, not so fast. There are definitely some things to consider. Even if you plan on keeping the property as a rental, this video has little pearls of wisdome will help minimize being caught off guard.
The word title is a collective term for all your legal rights to own, use and dispose of land. Title includes all previous ownership, uses and transfers. In order to insure the transfer of real estate property, a title search must be performed. Title insurance protects against the possibility of future loss should your legal rights to your property be challenged.
There are two types of title insurance: a lender’s policy and an owner’s policy. The lender’s policy protects the lender’s interest in the property for the amount of the mortgage loan. An owner’s policy typically protects the home-buyer for the purchase price. While a lender’s policy is often required to grant a mortgage loan, an owner’s policy is typically optional.
This information comes via Doug Pittman & Elizabeth Pedersen of Chicago Title. Filing Bankruptcy while being a homeowner can be confusing. Responsibilities are relieved for a fresh start but judgements remain connected to the property. A relief of judgement is possible but even that can be refused by the judge if he/she feels there is enough equity in the property to pay the judgement debtor.
Frequently repair work is done on property prior to the closing of a sale.
What if the seller doesn’t pay for the repair work and a mechanics lien is recorded after the closing?
Keep in mind that the priority of the mechanics lien is established when the work begins, not when the lien is recorded. If the work is started before the closing, and the party performing the work complies with the necessary statutory requirements regarding their right to claim a lien, the subsequently claimed lien may have priority over the rights of the purchaser and their new lender.
This is why your buyer needs title insurance!
If the purchaser learns of the recording of such a lien, they should contact their title insurer immediately. If the policy is a standard coverage owners policy (with an additional protection endorsement for homeowners) and the purchaser did not join in the contract for the work, or if the policy is a Homeowner’s Policy or an Owner’s Extended Coverage title insurance policy, loss resulting from the lien is most likely covered by the policy.
As a side note, it is likely that the title insurance company will pursue recovery from the seller for any amounts paid. This is based upon the rights contained in the policy and under the deed warranties, but in no way involves the new owner, whose title is secure. The title company may have also required the seller to sign a sworn affidavit regarding unrecorded labor and material lien rights as part of the closing.
(Courtesy of Chicago Title Insurance)
Ever wonder if easements stay with the land or if they are just granted to a particular person? It really depends on how it is set up.
When a new easement is created it must be signed not only by the owner of the property it will cross but also by any mortgage holder. If the current lender doesn’t consent to the easement and the property is later foreclosed, the easement would be considered to be terminated.
A license agreement gives only a personal privilege or permission to use the land of another. It does not run with property. A license is revocable by the property owner and often can be revoked on short notice.
We are talking about what it means when we have Fee Simple Title. In most cases, the estate or interest to be conveyed by the current owner to the buyer will be “Fee Simple.” The term “Fee Simple” has it’s origins in the English feudal system. The ownership rights of the tenant on the land during the feudal system were complex and in many cases conditional. At the end of the feudal system the fee (referring to the right of possession) added the term “simple” meaning there were no conditions attached to the right of possession of the owner or that the estate.
Sharing an original Frank Lloyd Wright original home found on the Sammamish plateau. Built in 1952 on 3.25 acres, this home is like living in a high quality tree house! It was a truly special experience to walk into something with such historic value. In my 20 years as a real estate broker, I have seen many homes built by those inspired by Frank Lloyd Wright but never an original. The photos and video don’t do this home justice. (video)
Dave Henn of Landover Mortgage presented the HARP Federal Program which involves the possibility of refinancing current loans owned by Fannie Mae & Freddie Mac. More than likely the program won’t become active until December 1, 2011 so stay tuned to this web site. (Video Presentation)