The Missing Link ~ Not Even a Clod of Dirt???
The Missing Link ~ Not Even a Clod of Dirt???
In every real estate transaction there needs to be a document recorded in the public records to indicate title transfer. Deeds and other public legal records pertaining to a legal description become the "chain of title" for that particular piece of property.
When you purchase real estate, you need to make sure that there is a document giving you title to the property and that it gets filed with the proper government authority, that being the County Clerk's Office in counties in Oklahoma.
You would think that's a no-brainer, right? Well.. things get a little hectic at times and people are human which means they can and will make mistakes... forget something.. sometimes forget something important such as a deed to transfer title when property is purchased.
Even though in ages past, a clod of dirt or a twig could be publicly passed from the owner of real estate to the new owner as an indication to the public that the property had a new owner, that will not suffice today.
A friend of mine that lives in a different part of Oklahoma purchased a home in 2000. It was a FSBO,For Sale By Owner, with owner financing. They moved in and started making payments. The interest rate was higher than banks were charging, so in a couple of years, they obtained a bank mortgage to "re-finance" the home.
In 2008, their home caught on fire. There was heavy damage. The home was not completely lost but it took a while for it to be fixed. Eventually it was, and they moved back into their now
"newly remodeled" home.
In 2010, our friends became interested in purchasing some land in our area so while they were here visiting, I pulled up some land ownership records to see who owned a particular piece of property that they had an interest in. That act intrigued them so, for fun, they asked me to pull up their home ownership records.
WHOA!
They didn't own a home. Their home was still titled in the name of the couple they had originally purchased from.
PANIC!
They had purchased without a real estate agent. No documents were prepared when they purchased. When they "re-financed", the bank did not catch it. The bank's attorney that did a title opinion should have found the break in the chain of title... but somehow it didn't happen. When my friend, Dala, began questioning the bank, they told her that they had, in fact, had a deed prepared and signed when the mortgage was done, but they could not produce it and it never was filed. The bank was going to go through their records and "get back" with Dala. It didn't happen.
She finally took it upon herself to resolve the issue. It took her about three months to get a deed from the couple that had sold them the home. It costed her. At this point in time, she paid the doc stamps (which usually are paid by the sellers) as incentive for the sellers to sign it. They were not going to sign if it was going to cost them anything. Dala did get the deed thought and personally filed it at the Court House.
There are several lessons here:
· First, it's a good idea to use a real estate agent and other professionals (such as an attorney), even if you're purchasing from a FSBO home from an individual.
· Second, always ...always.. put your eyeballs on the documents and get copies of them.
· Third, follow-up to make sure that things were filed.. In Oklahoma, you will receive the original deed back from the CountyClerk after it's been filed.
Oh, I should add one more lesson.. neither should you settle for a clod of dirt handed to you from the seller as a transfer of title and what you do not know CAN hurt you! :)
Disclosure: I am NOT an attorney and cannot give legal advice. You are advised to seek the services of an attorney for any legal matter, including the purchase of real estate.
Looking for a home for sale in Idabel, Oklahoma? Let me Google that for you.
Judi Barrett, B.S. Edu.,
Broker, Integrity Real Estate Services, Office Address: RR 5 BOX 126, IDABEL, OK 74745 580-212-5946
Our Name Says It All.
Real Estate Services You Can Trust.
If you enjoyed this post, why not connect with me elsewhere?
Real Estate ServicesOur name says it all.
Comments (7)Subscribe to CommentsComment