Preliminary title search

Preliminary title search

Also known as first owner searches.
Let me share how important it is to have a preliminary search done on any property that you plan on buying.
After contacting a motivated seller through craigslist or any other avenue the very first thing I do is go through my script or lead sheet to find out the magic buttons of the seller.
Only after inspecting the property and getting a repair list do I make an offer and start the process of locking up the property. My strategy is rent to own and I used this system over and over again to either buy the property out right using lines of credit I have established or my own cash or from other private moneylenders.
Once I have negotiated the deal to buy and give a small down payment and locking it up with a contract ,the very first thing I do next is contact my title company through a text message. I give them the exact address and sometimes the tax ID number of the property I have locked up and ask my title person to give me a preliminary or also known as a first owner's search. This will give me any liens or any problems with the property that I need to get squared up before I move any further in the process. This is very important! WHY ???
Because they could be liens on the property that even the owner does not know about also there could be lifetime leases granted to other people and the family that the seller either knows or does not know about. This preliminary search usually takes anywhere from 1 to 5 days depending on how busy your title agent is and how good of a relationship you have with them. In my case just a short text with the owners name and tax ID number I can have the search started that same day or the next day and normally is done in one day or two the most for me. And the reason is I established A good report with them right off the bat saying I am going to be doing multiple deals and I want your company to share in the profits.
This is an important step before you continue the process of buying wholesaling bar lease option in this property to clear up any obstacles before moving forward.
Just one example I encountered on my latest property is when the title preliminary came back with a mother of the seller has life lease of the property. I thought oh no I have to get in touch with her and this will prolong this property until we get this all situated. My first thought was this is going to take some time my brain instantly came up with what could go wrong until I used my mind training that I learned from this community and Dean Graziosi that directed me to think of all the positive things and that we could get this situated immediately if I got on the phone with the seller and found out the details and organized a solution.
Upon doing exactly this I found out that the mother had passed away and all that was needed was a death certificate from the seller to clear everything up.
In closing I urge everyone to do a preliminary title search or otherwise known as first owner search in my area and clear everything up before you proceed. When first starting out I bought properties without doing this and learned some valuable lessons that I am passing on to you now so you don't have to make the same mistakes I did. Besides this is a valuable needed member of your team that you should have or begetting urgently to work with you on every deal. They are also A good resource for recommending buyers to you and sellers these people are in the know and in the mix of real estate transactions with buyers sellers contractors insurance agents private moneylenders and the list goes on and on.

Continue to strive to build your real estate team has it is the backbone of your success !!!

__________________

Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


title

if you have had any stories or experiences with not getting a prelim title done please share with us here.!!

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Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


Good info

Thanks for the lesson. I would defiantly ask for this type of search when Im ready to buy my first property.

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Reynold Orozco


Hey Jay! Funny that you post

Hey Jay!

Funny that you post this. I had a recent run-in with running prelim title. I ALWAYS have my title company run title when we are looking to pick up a property. I have a guy that bought home via quit claim deed from a county tax surplus sale. When going into contract with him, he assured and reassured me that he could convey clear title ( I never do quit claim deeds when purchasing). After running prelim title I found out that there are two mortgages against the property from previous owner for over $60k even though the guy I'm buying from only paid $15,000. Now we have to re-negotiate the contract because the title company is willing to put the property through a tax sale certification and make sure the previous lien holder was served notice, ultimately removing the liens...but there's a cost involved...of course! ALWAYS DO YOUR DUE DILIGENCE people, this includes running prelim title work. The contracts the Dean has given us cover conveying clear title (among many other things), so be sure to use them Eye-wink

__________________

Lenee

www.allstarhouses.com

~Act successful! And you'll draw it to you.~
~Every achievement, big or small, begins in your mind. It starts as a thought.~


I always run a Prelim

I always do a title check when I am interested in a property, especially when I send out my yellow letters. That way when I do talk to them and ask them questions, I can quickly verify their truthfulness in what they're telling me. But it also gives me a good idea on where they stand as far as the house being, Free and Clear, Underwater or how old their mortgage(s) are. Before I ever talk to the homeowner, I have a good idea of whether to Wholesale, Buy and Hold, or take the house Subject To. Prelim's are the foundation to all my offers.

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BRE #01956371


Wow great information

Thank you for sharing Jay and Lenee!

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www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.


Reynold

Great!!! It is absolutely something you should do to prevent going further with the deal and wasting time and energy. Good luck my friend and don't stop moving forward !!!

__________________

Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


LENEE

Great story or should I say experience that shows the importance of prelim title !!!! I have many of them also of when I DIDNT do them and learned a few lessons Smiling) congrats on all you have accomplished !! Smiling)
Jay

__________________

Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


Title Insurance

I would also highly recommend title insurance. My parents bought a home in NC and waived title insurance (not required there). When it came time for them to sell, they found out there was a break in the chain of title. One of the daughters never signed off on the property transfer. Long story short, 2 years later and several thousands in lawyer fees, they still have the house.


Yessssir Simon

Very good advice Simon !!

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Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


Interesting Jay

Thx so much Jay for the info you da bomb!

__________________

Tony

Go faster do more! GFDM!


Title

Normally unless negotiated otherwise - it is the sellers responsibility to have abstract done so as to be able to give clear and marketable title. The buyers responsibility to update it !!
UNLESS negotiated otherwise. You can ask your attorney these questions and he will explain to you. I have had many buyers and sellers try to tell me otherwise as they may not want to pay for their part. If it is such a sweet deal you may be willing to pay for some of the sellers or your buyers fees. Know and learn what are the standard practices as you can negotiate from there and you will know what you're talking about. Sit down and interview many attorneys and have a list of questions to ask them that you do not know and you will soon become an expert.
Jay

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Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


DONT FORGET

That even though the preliminary doesn't come up with any obstacles that the abstract 40 yr title search that the seller has to provide you with clear title may turn up other obstacles that may need to be addressed. I just ran into this as the prelim showed no problems on this one but when the 40 yr search was done it turned up a Lein that did nt have a release done so we had to do some work researching and getting release done before proceeding.
Lesson: do prelim and also make sure seller provides 40 yr title search/ abstract

__________________

Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


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