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how could i have dropped ball if title ins. was issued second of all it is not my job to look over 200 pages of LEGAL( corporation papers) documents to see who is allowed to do what.......that is way above my pay grade as an agent......So you are telling me you run a background check and do a title repot on a prospective seller....YOU MUST BE KIDDING ME You sound like you dropped more than the ball.......
If you are a agent in NY you should know what you are legally required to do.
No point in arguing with someone regarding other states rules.
Look over documents and render a legal opinion on who has legal right to sell the property? I don't think so! In most states you would be practicing law and could loose your real estate license. Sounds like a title insurance claim - thats why they employ a legion of lawyers! - See my posting "Title insurance vs Attorneys opinion"!
Look over documents and render a legal opinion on who has legal right to sell the property? I don't think so! In most states you would be practicing law and could loose your real estate license. Sounds like a title insurance claim - thats why they employ a legion of lawyers! - See my posting "Title insurance vs Attorneys opinion"!
I can,t beleive in any stae it would be up to an agent to find out who the legal owner of a corporate property would be...............way above our scope of work...............im not a lawyer..........THANK GOODNESS
I can,t beleive in any stae it would be up to an agent to find out who the legal owner of a corporate property would be...............way above our scope of work...............im not a lawyer..........THANK GOODNESS
I am with you Westchester. Most Title companies are related to each other, like Stewart Title and Chicago Title are two of the biggest in this country, but they go by many other names.
The OP seems to think this is all some kind of big mysterty, but Title Companies insure that there are no encumbrances against the property. Some are owned by Lawyers and traded on the NYSE.
I can,t beleive in any stae it would be up to an agent to find out who the legal owner of a corporate property would be...............way above our scope of work...............im not a lawyer..........THANK GOODNESS
We are required to do due diligence on the property. The legal owner of the corporate property is the corporation which appears on the deed. That is different that who is authorized to sign.
We have what we call Trio's out here, which we get from the title company. It has a copy of the deed with it. With corps, I just ask who all the members are and confirm that the person signing is the authorized member to sign. Most LLC's out here are 2-3 members so it is not a big deal. If there are more, then the member is required to give me a copy of their Operating Agreement with the section highlighted giving them authorization.
I don't wade through 200 pages of documents. It takes me about 10 minutes of time.
Going back to the original post - what does the first page of the title insurance commitment say? It should recite something like "Title to the described premises is held in fee simple by [somebody]". What does "Schedule B" disclose as clouds, encumbrances, and competing claims?
If the title insurance commitment says the property belongs to the LLC that sold it, Schedule "B" is clean, and the transaction closed with title passing from the LLC named as owner in the commitment to your client, the title insurer is obligated to defend title.
If the commitment discloses competing title claims, other clouds, or most importantly somebody other than your client's seller as owner, the title company may not be obligated to defend title.
Now, if the second set of facts prevails, did the title insurance agent also provide the closing services? That presents an interesting question as to the closing agent's liability if it was aware of defects yet proceeded to closing anyway.
In short, read the title commitment and get a lawyer.
Hear is the abreviated story..................Sold a property -Commercial...was owned by an LLC (limited Liability Company) was bought by my client.......... who also put the property into LLC now after closing the father of the person who sold the property , says that the son did not have the legal right to sell the property..../ all the documents where ok by the Title Company??????? So Is my client ( the buyer ) Protected by his Title Insurance??? That the person Who is representing that he is the , owner axtually is the owner????????????????? Isn't that what title ins. is for that you get clean title and that the person who is selling the property is actually the Owner???????????????? P. S. the property has Three tenants and 2 refuse to Pay because they say they do not know who the legal owner is????????....also Son is holding the Note on property sale price 650k with 130 down.....holding paper for 520kkkk....wtf.....
who also put the property into LLC now after closing the father of the person who sold the property , says that the son did not have the legal right to sell the property..../
This would be an encumbrance to the title. This would be a issue for the title company to defend, the buyer paid for this at closing.
and he does win..can my client also sue tilte company for stating he was getting clean title when he actually wasn't..
A RE attorney can answer that question after you also ask him to sort this mess out for you!
it really does not take much time to check property ownership when taking a listing, or aiding someone purchase. Especially with a commercial property, it's very likely that some entity owns the property rather than a single individual. Even with new management clients, I run a quick search in real property to make sure I am dealing with the owner. You just never know these days.
and he does win..can my client also sue tilte company for stating he was getting clean title when he actually wasn't..
You can sue anybody you want. The question would be whether you have a chance to win or not.
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You sound like you dropped more than the ball.......
exactly..................
sounds like an encumbrance
