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I have come across something I have not experienced before...
A property is being sold by trustee to owner. She is elderly. Their attorney is handling closing. I was fine up to there. Then I find out, after check is deposited with said attorney that the actual title agent is in house, that is ok too, but the agent who is doing the searching and so forth is actually the trustee for the seller, her mother.
Is this legal practice? I am sure it probably is, but it makes me feel vulnerable from the buyers point of view and sellers are the ones electing the location for the closing. Does anyone out there know this?
I will email my friendly title company locally tomorrow and ask same thing, would like to know sooner rather than later though.
My husband who is a Licensed Insurance agent said:
it is legal
BUT it would be good to get a letter from the underwriter for the title company stating it is OK to proceed with the transaction, as it is indeed a conflict of interest.
sorry to sound dim, but do you mean from the insurance company or the title company, as owners daughter IS the title company I think she is the only person at the attorneys office that does the title work.
The daughter, a.k.a title agent, MUST HAVE AN UNDERWRITER COMPANY that she does these title policies for.....THE company that she is writing this for should give her a letter stating it is OK for her to process this transaction.
example: my husband is a title agent, one of his underwriters companies is Chicago title, this lady should have a similar underwriter who is going to write the policies for her...she will need a letter from them, this is called an "arm's length" transaction, meaning the party doing the transaction is also RELATED to the transaction.
I think you will get better responses if this thread is moved to the Real Estate- or Real Estate Professionals- Forum.
Even though title insurance will be issued, I would be personally concerned about the title search being performed by a relative. I looked through NOLO, but there was just too much to read.
...... and sellers are the ones electing the location for the closing. Does anyone out there know this?
In my neck of the woods, the seller's title company and attorney determine the time and place of closing.
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