Buying a house without a title?

Question

I am in contract to buy a house for 6k in Ohio. The old lady that is selling is having trouble tracking down the title. She never got it from chase bank when it was paid of in 78 i'm told. She is in a nursing home and needs to sell, I am in contract however what if she/realtor cant come up with title? can i still buy and what if i fix up and want to sell or rent it out?

Answer 1

If you are in contract there should be a title company handling the escrow.

The title company will insure the title, it is called title insurance, when the problem is corrected, and will not close escrow until the problem is corrected..

Most contracts for the purchase of real estate provide that the seller must be able to provide clear title. If the seller cannot deliver clear title, the contract is cancelled and your deposit is returned to you.

When the seller paid off the bank she should have received a document called a reconveyance. That document should have been recorded.

Often the lender does not send that document to the owner and/or it is not recorded by the lender or anyone else.

The first step is for the title company to contact the lender that was paid off in 1978 to get a reconveyance and have it recorded.

Fortunately you mention that the lender is Chase Bank.

Chase bank is a highly reputable lender and has records of that transaction. Chase can easily search its old records to determine that the mortgage was paid in full in 1978.

I guarantee that if it had not been paid and the owner was not making payments they would have foreclosed long ago.

Chase Bank will review their records and issue the necessary documents to the title company to clear the title.

In most cases where this happens the lender is honest and provides the necessary reconveyance and the title company records the reconveyance.

If the title company is not having any success, I recommend that you contact an attorney who specializes in real estate law, you should have one anyway for the purchase of a house.

I recommend that you follow the recommendations of the attorney.

I noticed that several responders thought that this was a serious problem.

Actually in most cases it is not a serious problem to correct, but it must be corrected prior to close of escrow.

This happens frequently when the mortgage is paid off. The seller does not know that they have a right to a reconveyance from the lender, so they do not ask for one. In most cases the property owner does not even know what a reconveyance is.

The homeowner fails to ask the lender for the reconveyance and the lender often fails to give the homeowner a reconveyance and fails to record the reconveyance.

In most cases this is a problem that the title officer who is handling the escrow will clear up for you.


I recommend that you talk with your title officer that is handling your escrow.

If the title officer says that this problem cannot be cleared, then I recommend that you cancel the transaction and demand that your deposit be returned because the seller cannot deliver clear title to the property.

I doubt that will be necessary.

Chase is a very reputable bank and keeps very good records.

I will be very surprised if Chase Bank does not deliver the necessary documents to the title company to clear the title on this property.

Answer 2

Always make sure you've got a clear title to the property. Eventhough it sounds like a great investment, it can come back and bite you....and you do not want to go to that seminar.

Ask her if she knows the title company she bought it through or see if you can find out by going through the county appraisal district (on line).

Regardless of you're contract, you are not obligated to buy if they cannot provide you clear title. At least have a title company run a title search for you. Without a clear title, you will be buying at your own risk not to mention have major problems when you try to resale.

Good luck.

Answer 3

I'm not sure how things work over there, I couldn't imagine a Lender loaning you 6k without the house deeds. As this is obviously the legal proof to who owns the property. Good luck! buying a house can be stressful and hard enough without the added problems.

Answer 4

GET THE TITLE!!!!! before you do anything. If she is selling the property to you, you definitely need a title search. Not only to get the title, but to make sure it's free and clear of any liens that may be on the property. No idea what the charge is, but it will be worth 10 times whatever the charge is.

Answer 5

I live in Canada, but I believe it's all the same... you need that title! Do you have a Land Titles Office near you? It will be registered in that office. You need the Property Identification Number and the tax roll number.. if you don't have that, then the address will do..but check it out..sounds a little scary.

If this is a mobile home, go to the mobile home registry, it's online.

good luck and careful

Answer 6

First ofall there is no such thing as a title for a house. You get a deed to yhe property - ONLY. Contact a title agency and pay to have them perform a title swearch and see what somes back, if it is clear, it is ok. The title company will instuct you.

Answer 7

She or her realtor will have to order a new title. You should not buy a house without a title; you'd be asking for lots of trouble.

Answer 8

Dont just give her the money without getting the title. Maybe check with town/city hall, they generally keep track of things like this, and they may have a copy.
You dont want to get into legal problems because she died and her kids want the house or something.

Answer 9

Just go to the Court house and tax office get a copy of when the taxes was last paid on the house than get the tax people to help you pull the deed and find who has the deed. The court house will be more than willing to help you find it. Good luck!!!

Answer 10

Some one has the abstract and they can come back at any time and take the house. If the bank is suppose to have it, then I would push to get it. I would have a lawyer working on this, because without it , you don't own it.