A lot can happen during the process of selling a piece of real estate in Detroit. Here at Detroit Fair Offer, we encounter many people with questions about selling a house with title issues or pending legal problems. Throughout the years, after being involved in thousands of real estate transactions, we’ve learned that every situation is different. Sometimes the issues are minor and other times, they can be so complicated they can prevent a sale from closing. In this post, we will explain what you can expect when selling a house with title issues in Detroit MI.
Identify the problem
When you sell a house there are certain steps that must be taken before the actual closing can take place. The first step involved is usually completing a title search. The title search will typically examine the chain of title and identify any existing liens. If there are any breaks in the chain of title, this can be a problem. This means there could be missing records of ownership or that at some point, a sale may not have been recorded or there may have even been some type of fraudulent activity. It is very unfortunate but deed fraud is a very common problem in Detroit. If you think you may have been a victim of deed or mortgage fraud, visit here for more information or to report it.
Close with a title company or real estate attorney
In Detroit, it is very common practice for someone to quit claim a property to another party and then just walk away. Transferring ownership via quitclaim deed can cause problems if not done correctly. We highly recommend paying for a title search before purchasing any type of real estate, even from a family member. Once you sign a quitclaim deed and have it recorded, you automatically inherited any liens associated with that property. This means if the previous owner owed back taxes or had blight tickets or contactor’s liens, then they now become your liens! The cost of a basic title search is relatively small and the results typically come back within 3 to 5 business days. When Detroit Fair Offer is purchasing a property, we always run a title search to identify any problems with the title and if there are issues, we do whatever we can in order to clear it.
Everything needs to be in writing
You should always sign a purchase agreement when you sell a house! When selling a house with title issues, it helps to have all of the terms outlined in writing so it is clear as to who is paying the liens. In many cases the liens will come out of the seller’s proceeds from the sale at closing. It all depends on what is negotiated and what is stated in the purchase agreement. Everything should always be put in writing when selling a house!
Consult and ask questions
Don’t ever hesitate to ask questions about what needs to be done in order to clear any title issues! A title agent or real estate lawyer should be able to answer any questions pertaining to solving the problems with the title. If there is anything you can do on your end to speed up the process, they will be able to advise you on what those steps are. In many situations, title issues are curable and can be remedied simply by taking some actionable steps.
If you would like more information about selling a house with title issues in Detroit, contact us here or call us at 313-647-8806