Posted on: 16th Jan, 2010 04:55 am
hi, we are trying to buy a property from a person who got it in life estate and the latest deed says quit claim deed. is it okay to buy such property. any protective measures to make sure ? we are first time home buyers. kindly advice
When you purchase the property you will typically use a title attorney to complete the transaction.
The title attorney will ensure that the title is free and clear of any leins and that the person selling it, is the person allowed to do so.
On your hud settlement statement, you should see something call Title insurance. This is insurance that protects the lender and the buyer from any deficiencies on the title. Some of your team might say that you don't have to buy title insurance for yourself if you wanted to save money, the lender will require it for them, it is not wise to fore go the title insurance. Especially in instances like this.
Your Realtor should be able to explain all of this to you. If you are not working with a realtor, your lender can explain. If you are purchasing the home in cash....get a title attorney.
The title attorney will ensure that the title is free and clear of any leins and that the person selling it, is the person allowed to do so.
On your hud settlement statement, you should see something call Title insurance. This is insurance that protects the lender and the buyer from any deficiencies on the title. Some of your team might say that you don't have to buy title insurance for yourself if you wanted to save money, the lender will require it for them, it is not wise to fore go the title insurance. Especially in instances like this.
Your Realtor should be able to explain all of this to you. If you are not working with a realtor, your lender can explain. If you are purchasing the home in cash....get a title attorney.
Thank you for the reply Elnora. I appreciate it.
>>Is it okay to buy such property.
No. The owner of the "life estate", the "life tenant", isn't allowed to sell the property. The "remainder man" is the real person who owns the property, and they're the only one who can sell the property, but they're not able to sell it while the life tenant is still occupying the property as their primary residence.
No. The owner of the "life estate", the "life tenant", isn't allowed to sell the property. The "remainder man" is the real person who owns the property, and they're the only one who can sell the property, but they're not able to sell it while the life tenant is still occupying the property as their primary residence.
