A non certified judgement has been placed against my seller's property. According to him there was no monetary awards in the case. We have a buyer to buy the property but the title company is asking to take 10,000 at closing for a month and then return it to him if it is unclaimed. Is this a good idea? He is very concerned? What would be the best course of action r this?
2007-08-02 03:33:48 · 1 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It sound like a lis pendens filing. Until the case is fully settled the other party has a permanent claim against the home. If the case was fully settled and the other party did not receive any award, or the award is paid in full, then the filing needs released. The title company believes there is no valid claim, or the lawsuit was for a small amount, but needs certainty.
I would close the loan, the title insurance protects the lender, buyers should always buy a policy anyway, and the title policy will protect the buyer. The 10,000 will remain in escrow until a release has been obtained on the potential judgment.
I would consult the attorney preparing the deed. If the case is closed it is a formality to release the claim. The seller should not be concerned unless they need the money immediately. In that case, the seller is probably just out of luck because there probably will not be a way to get clear title otherwise.
2007-08-03 09:50:25 · answer #1 · answered by OPM 7 · 0⤊ 0⤋