I am planning to buy a small lot of residential land to possibly put a house on. It is just woods right now, nothing was ever built on it. It was foreclosed on and the property owners association for the neighborhood now owns the land and is selling it. I offerred to buy it and they accepted, however they just stated that it will be on a Special Warranty Deed because it was foreclosed on.
1. should I be worried?
2. should I request a general deed or dont buy?
3. if I ask that they write that they are responsible for any monies owed previous to my purchase, is that sufficient?
Thank you
2007-10-18 07:26:38 · 5 answers · asked by AVS 2 in Business & Finance ➔ Renting & Real Estate
If you purchase an owners title insurance policy its a non issue. The policy will cover you if any title issues or claims are made on the property.
They want to use a Special warranty because like you, they don't want to get stuck with any title issues that occurred prior to them owning the property. Especially a property that was involved in a foreclosure.
2007-10-18 12:51:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Get a title policy in this situation. If you rely on the advice of an attorney and he makes a mistake, you will not be reimbursed for damages. If the title insurance company makes a mistake, they must pay.
By the way, are you sure this is a buildable lot? In many places the laws have been changed as to how much lot area is necessary to put a house on it. This has happened where I live. This lot can not be built on, because of changes in the law, There have been a succession of owners of the lot. When each owner finds out that no improvements can be put on the lot, he sells it to some other person who makes a foolish investment.
2007-10-18 08:01:59 · answer #2 · answered by Bibs 7 · 0⤊ 0⤋
from wiki solutions: particular guarantee deeds are transforming into to be greater common. A typical guarantee deed is a promise to the customer that the vendor will guarantee any earlier problems with call, not purely during the vendor's possession, yet back alongside the chain of possession. a definite guarantee deed, on the different hand, limits the vendor's promise -- or guarantee -- to call issues that arise at the same time as the vendor owned the valuables, yet supplies no guarantee for propblems earlier than that component. to illustrate, builders usually provide particular guarantee deeds. they only owned the valuables long adequate to construct the properties. they at the instant are not sticking their necks out to guarantee shoppers against something that handed off to cloud call while the subdivision exchange into nonetheless a pig farm. foreclosure property is yet another occasion the place you mostly see particular guarantee deeds. The financial company, like the builder, has no close relationship to the valuables and could not bend over backwards to vow something correct to the situation of call call earlier they won the valuables via foreclosure. common not, get a typical!!!
2016-11-08 20:42:34 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You should probably ask a lawyer or title company about these things. Any previously owed amounts would be covered by title insurance. In this case especially, don't try to save a few bucks by skipping the title policy.
2007-10-18 07:34:16 · answer #4 · answered by Debdeb 7 · 0⤊ 1⤋
most foreclosures have a 'special warranty deed'.
basically, they're saying that they're responsible for the title for the period they held it....not before it.
if you find a good attorney to do the title search...they will search for all the liens...if there are any..and you should be fine
2007-10-18 07:37:46 · answer #5 · answered by Anonymous · 0⤊ 1⤋