House Purchase from an Estate NEW ?

[zibazinski]

No it does not. I bought a house an hour after it came out of probate and I had an inspection and the roof replaced as part of the sale.

[8 Bit WWBG]

And sometimes they are AWESOME deals. One house on my block sold for quite a bit under value just because the heirs wanted to get their money ASAP.

[swamp]

Feb 4, 2011 15:37:54 GMT -5 @sroo4 said:

I think I may have asked my question wrong... We are having an inspection done so not really "AS IS"... but what I'm getting from wording is that I don't have any recourse or warranty if something goes wrong post-close.

In NY, a purchaser of RP from an Estate is given an Executor's Deed or an Administrator's Deed. You do have some title protections, but not as extensive. That's why you hire an attorney to check title for you.

[Deleted]

Just my thoughts but I can see why they would want to add the statement. They didn't live there & don't really know the history of the house. Even seeing water damage doesn't mean that they know about it or what caused it. In a case like this I might pay a little extra & hire 2 different inspectors. Just remember knowledge is power. If you find out that the water problem (whatever it is) is very minor & an easy fix that's grounds for a real low ball offer. After all they don't know that it's an easy fix. Just make sure you know everything before you buy the problem.

Oh & remember a water problem could mean rot or mold. Both can be expensive to fix.

[debtheaven]

OP, Bonnap did this, and she is extremely knowledgeable in RE. She is living in Germany now so she is probably asleep but I'm sure she will see your post tomorrow (our tomorrow). She will give you good advice.

[Deleted]

Your version says "to survive the day of close." I think you can ask for stuff to be fixed, but once you close, that is it. I always figured it was that, anyway, because Alabama is a "buyer beware" state.

[2kids10horses]

An "AS-IS" contract says that the Buyer is not going to fix anything. So don't ask. Now, that doesn't mean you can't get it inspected, and if you find problems, you can either accept them, or ask for a reduction in price, or cancel the contract.

I'm not an attorney, but I think what the clause they are putting in says that if the hot water heater leaks 5 minutes after you close, you're stuck.

So, either get really good inspections, or offer low. Probably both! Also, be SURE to buy title insurance.

[mtshastawriter]

I'm not an attorney but real estate sales in CA are considered "as is" when they are from an estate. The seller is not expected to make any disclosures because they did not live on the property.

Then again, on our home that we currently live in, the seller failed to disclose that our water well has over 900 ppb in arsenic and other toxic substances, as well as a septic system that had non-functioning leech lines...

We had a home inspection, well report, and a septic inspection prior to purchase, all that came back fine. Neither of the three were worth the paper they were printed on.

We spent over 30K suing the seller, who carried our mortgage so we had an "asset" we could attach, and ended up a wash in settlement and the only people who profited were the attorneys. It was a total pain in the ass and a total waste of time.

I don't really plan on moving anytime soon, if ever...

[Deleted]

Bonnap here. <Exhalts Debt for her kind words>

"Property being conveyed by personal representatives deed, no warranties or representations to survive the day of close"

This statement is going to mean different things depending on what state the property is located in. All states have slightly different rules with respect to both property disclosure, agent's disclosure and the role of personal representative/Trustee's disclosure requirements.

My experience is based on being the Trustee of my mother's estate. Her property was located in CA. In CA executors/Trustees et cetera are exempt from providing the Seller's Property Transfer Disclosure sheet IF they have not lived in the property. That was my situation. But I went ahead and ordered a termite inspection as well as a property inspection to protect the estate from low-ball offers (I've been around the block a couple of times). Both termite and home inspection reports become a matter of record for the house which must be disclosed to potential purchasers. Many states have similar provisions. When I sold the house a similar type of disclosure as the one you encountered was made a part of the contract.

In CA we typically don't use lawyers for simple residential sales transactions. But a buyer would pay for a title search as well as title insurance to protect themselves (and its a condition of all institutional lenders).

I echo everyone else's advice with respect to getting a very detailed house house inspection as well as follow up inspection if recommended (e.g. roof inspection depending on age). And make sure you do a really good search of the location; e.g. is the house under a flight path? Go door to door and chat with the neighbors. Not only will you hear about neighborhood issues but if there's been some major issues with the house; e.g. settlement, sewer failure et cetera, some gossipy neighbor is sure to let you know, lol!

Good luck!

[Deleted]

It also appears that they're saying they are giving you a Personal Representatives Deed and not a Warranty Deed. A Warranty Deed "warrants" (guarantees") that the person signing it has the right to give the property to you. If it turns out that they had a common-law spouse who should have signed off and didn't and now says you don't own the house, you can go after the person who signed the deed.

A Personal Representatives Deed probably says something like, "whatever right the deceased had in this property I'm turning over to you, with no promises about what rights they had." You've probably gotten title insurance, which would cover you if anything were wrong with the title.

I just worked for an attorney who did a lot of real estate transactions when I was in college- no legal credentials at all- but that's my educated guess.

[2kids10horses]

When I bought my first home, a condo, I bought it from an estate, and I received an "Executors Deed".

Your "Representitives Deed" will be fine. Just buy title insurance.

[michelyn8]

therefore I can't go back and say well you knew about this vortex to hell on the property...

Read more: notmsnmoney.proboards.com/index.cgi?board=finance&action=display&thread=2912#ixzz1DSyZYOOA

You're going to buy a house on a Hellmouth...............cool. Just make sure to put Buffy, Giles, and Angel on speed dial.

(sorry..........couldn't help myself )

[Deleted]

Yeah, that happens...

Often the escrow company is affliated with a title company. What state are you in?

[Deleted]

I've used First American Title and Fidelity.

Wasn't it a title Co that found the judgment against your husband? This is generally done as part of the search process. Or was it found as part of a credit search?

ETA: I'm asking because it seems odd that you're asking for title co recommendations now.

[Nazgul Girl]

Your lender will have a customary title insurance company and a closing company already in place. Or, possibly the closing will be held at the excutor's office since you said he was an attorney. You will get a call from the mortgage closing department telling you who the document ( or closing preparer ) prep person is (whom you will get periodic calls from ), and you will be informed about needing to show your last couple of paychecks and probably having a final credit report pulled on you (just to make sure you didn't go crazy and buy a BMW and a string of racehorses right before closing ). You'll be sent the closing estimate paperwork. You'll be told when and where to show up for the closing, and how much to bring. Make the check out to both the "Bank of Banks OR Jon Doe (yourself) ", in case the closing blows up. At least, we were told to do that many years ago, and have done it ever since. That way, you can redeposit your closing check/down payment just in case the closing doesn't go through. Good luck. I'm really happy for you.

[Deleted]

"Stewart Title"

Are they still in business? I also didn't have a nice experience with them either. It wasn't a big deal that cost me anything but they took months to record I notice of satisfaction (for the payoff of a seller carry back). I knew they had the info because I gave it to them. How hard was it to go to the County recorder's office? Sheesh, should have done it myself.

"I just want to make sure that I (instead of the lender) have some protection in case of any problems"

Agreed. A lender REQUIRES title insurance on both a purchase as well as for refis. You will be paying for their policy as well as a policy to cover your equity (owner's policy). Since you're paying you get to choose. On a refi, typically the lender has negotiated a pretty good deal so it's often best to go with them. Since your purchase is protected forever you only pay for the new lenders policy, not a new owner's policy.

But you can get some suggestions from your real estate agent and do some comparison shopping.

[DVM gone riding]

it sounds right. The escrow companies in our state are also the title insurance companies and would issue you title insurance (to protect both you and the lender) automatically.

In our state we can no longer do cashiers checks, we had to do wire transfers, so check on that, it usuall costs $25 and needs to be sent a day or two in advance to the escrow company. they will then cut you a check for any "overage" in our case some how it ended up being like $4 that things were off by.

[2kids10horses]

Closing proceedures vary by state.

On Title Insurance: There should be two policies. One for the Mortgage company. THey're gonna require you buy it, to protect them. You should get an Owner Title policy. It's optional, but you should buy it. There's usually a discount on the Owner's policy if both are purchased at the same time.

Since you are getting a mortgage, the lender is requiring you to fund the escrow account in advance to pay for the real estate taxes and insurance. They want to keep enough in the account to pay the bills when they come due.

At closing, the taxes for the year 2011 should be estimated and divided up between you and the seller. The amount you will have to pay depends upon the timing of the tax payment. If the Seller has already paid for 2011, the money you bring to the table will be a reimburesment of money he paid in advance. Again, this can vary by region.

Congrats on your purchase. You should be able to get a copy of the HUD in advance. The HUD is the document that shows what all the money is spent on. THere will be 5 or 6 copies signed at closing.