Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My mother passed in April and my sister is inheriting the family Farm (200 acres plus a house) that has been in the family for 50 years. It's been paid off for years and no liens. This is a County 100 miles from me or I would have my people handle.
The Attorney handling has done a Special Warranty Deed to transfer the title but she has also done a "Contract" with $0 sale price she wants to take to the title company so they will do a title search and issue a title policy. She told my Brother the Executor it was to protect him.
I see no reason for the Contract or the Title Company to do a Title Search since the property has been in the family 50 years. Also to protect the Executor makes no sense. Title Policies are based on sales price so how do you price a Policy with $0 in the contract ?
What do you think? The place is worth about $750k, would you advise getting a title policy for an estate where inheritance is going from Mother to Child?
To me it's similar to a divorced couple transferring the house to one spouse.
An estate has no obligation to provide a warranty deed on inherited property. The heir is entitled only to the interest in the property owned by the decedent and title almost always passes via a quit claim from the estate.
If the sister wants to know whether the title is clear is not, she should pay for a title search or pay the estate to purchase a title insurance policy for the market value of the property or purchase title insurance after taking title via a quit claim (and let her work out a price with the title company).
Out here they always do a title search for estates because they need to confirm there aren't any liens on the property otherwise they can't close out the estate.
I assume that the title company has a minimum insurance fee as there are always those that transfer for $1. Title insurance here for that purchase price would be about $1200. Not sure what prices are like in your area.
Out here they always do a title search for estates because they need to confirm there aren't any liens on the property otherwise they can't close out the estate.
I assume that the title company has a minimum insurance fee as there are always those that transfer for $1. Title insurance here for that purchase price would be about $1200. Not sure what prices are like in your area.
That may be the need for it but I need to ask. I read your other post from another thread where you said they do for estates which made me ask the question.
If it's a minimum it might be worth it just to make sure.
It's a family deal and we hate to spend money unless it's needed. I'll call the Title Company Monday and check on the costs.
That may be the need for it but I need to ask. I read your other post from another thread where you said they do for estates which made me ask the question.
If it's a minimum it might be worth it just to make sure.
It's a family deal and we hate to spend money unless it's needed. I'll call the Title Company Monday and check on the costs.
Thanks SF
Well if I was buying the farm, I would want the title insurance, but since it is going to a family member it is less of a concern I think. I'd also ask if the title insurance policy that was on the property when it was bought covers heirs. It might so you might not need a new policy.
What do you think? The place is worth about $750k, would you advise getting a title policy for an estate where inheritance is going from Mother to Child?
I wouldn't recommend a title insurance policy, but it wouldn't hurt to do a title search to make sure that there were no liens placed upon the property. However, if it hasn't been done yet, I would recommend an appraisal, based upon the date of death, to establish the property's basis.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
