Does a realtor usually know if the house they are selling still has a lean on it? So money still owed by the current owners of the house?
My friend was interested in buying a house with cash and be able to have no house mortgage. The realtor showed him a house he really liked. But now just told him that the current owner still owes 5000 dollars on it. And if he were to buy it he have to pay it on top of how much his offer was.
(0) | asked by: Callie Martinez | share | 5 months ago | Report
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Callie, the price agreed in contract has nothing to do with any debts that seller has...all seller's debts should be paid off at close of escrow from seller's proceeds, unless agreed otherwise in writing. At close of escrow, the buyer should receive a clean title on property. It is so important to have a good, knowledgeable realtor that does all research and explains the process. If you have any questions, please feel free to contact me, I would be happy to help.
Hello, As listing agent ; we should know if the properties still have a lien or no thru the help from title company.
If you have a realtor who does his homework, he/she should be able to find out from escrow/title simply by calling them and escrow will send him/her a copy of all liens on the property. Normally, the seller should be paying off all liens through escrow from their proceeds. If the seller's not willing to pay the liens then he can never sell the house without agreeing to pay the liens through escrow. So one way or the other the liens need to be paid off prior to close of escrow.
I always get a property profile to determine what is recorded against the property. Then once escrow is opened the escrow company will get a preliminary title report to confirm the liens. If the house is a short sale there could be additional items that come up after the orginal negotiations.
They are most common in a difficult seller's market, so right now there are not so many. A lot of times they are properties that are having difficulty selling conventionally (many times due to pricing or location issues). They usually require a decent sized deposit and the terms vary (most want you to close within 1 year). You have to negotiate whether you are going to pay just rent or rent plus an additional amount every month that goes towards additional deposit. Most owners have credit requirements including providing a credit report. There are standard Lease/Purchase contract forms. Additionally, in return for giving terms, most owners expect full price. Of course, a lot depends on the price range of the property you are looking at and depends on what the owner's housing situation is (with issues such as "is the house paid for" or "is there a current mortgage on the property" being a couple of examples). It's a complicated subject, but hope this helps a little.
ALWAYS get a title search and purchase owners title insurance when you buy a property. You only have to pay for it once and you are covered against claims. As far as the situation you outlined, it sounds like a negotiation issue.
Realtor usually doesn't have knowledge of any Lien on the house before Escrow was open. However, once the Escrow is open and Prelim was received, Realtor could find out any existing Lien. Buyer has option to negotiate purchase price, cancel his offer or agree to pay the Lien.
Hello again Callie, The realtors, seller and buyer will receive the preliminary title report once escrow is open and this compilation of information on the home would disclose any lien. You can however inquire in advance if you have any questions on a particular property, but the prelim is normally pulled once escrow is open. Have your friend speak with his/her realtor about the true value of the area and if the warrants the asking/offering price. An additional question would be: with this additional $5000 payment, does this payment allow the seller to sell without being a short sale situation? Best of Luck!
Negotiate the seller to pay at close of escrow. If not move on or pay.
A Realtor may order a free of charge property profile from any title/escrow company giveing such info. ROCKIN THE HOUSE realty.. Jonathan Abbinante selling greater Las Vegas Real Estate since 1997
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