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This rookie learned something new last week!!

By Shari George

Real Estate Agent with Coldwell Banker Tomlinson

January 30, 2007 04:01 AM

Isn't it great when you learn something new? Isn't it better when it comes to you in the way of help, and not by the way of hard knocks? I found out something that totally saved the sale of my listing.

This particular listing I'm working with both sides..my buyer came from an open house that I held three weeks ago and we are going to close tomorrow. After I received the title commitment last Thursday, I thought it was going to go up in smoke when I read that my buyers have an IRS lein for $5400...There goes any chance of title insurance...

Soon after I received the news, the escrow agent called me and asked if I had read the commitment yet and of course I had. I did not know what to do...I called my buyer, and told her that had shown up on the report and we are at a stand still..She was upset, of course..she was hoping it would have been erased since she and her husband paid off the lein a few weeks ago. Unfortunately it takes a while for the IRS to release tax leins and it would probably be anothr month at least until it would be released and off the records..I felt really bad and wished that I could do somethig so that she could move into this house.

When I hung up the phone with my client, I called my partner and freind and broke the news to her. (She and I were co-listing the home.) My partner, who has been in the business for only 2 years longer than I have tells me that this may not be as big of a problem as we were thinking...She tells me that the buyers can give money to the title company for them to hold until the lein clears off the records. This will be a security for the title company, therefore they will issue title insurance!! The amount given to the title company is the amount of the lein X 3..about $16,000.

WhooPEEE!! I called my buyer, told her of the plan, and she said that she would be able to do this, spoke to the lender, and all is well.. we are back on track to close tomorrow!!

I will remember this in the future... I hope this information will be of use to some of you as well!!

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Shari George

Coldwell Banker Tomlinson - Lewiston, ID

Jay, They could not accept it as long as it came up on the preliminary report. It had to be off the records...I think the title officer said in case that the payment was not accepted.. Who knows why it wouldn't be...If someone out there knows why, I'd be curious to know...

I've been very lucky having a great team!! And Katy has been wonderful!! It's amazing how many road blocks can come up in a Real Estate transaction...

Jan 30, 2007 02:19 PM

Patricia Beck

RE/MAX Properties, Inc., ABR, GRI, SRES - Colorado Springs, CO

Colorado Springs Realty

Shari, I'm glad you are able to still close tomorrow! Great job looking at all the possible options to make the deal work. Did they have to give the title company $16,000 cash or just a promissory note? I could see how that would be hard for some people to come up with the extra money. I also didn't know it took so long for the lien to be released with the IRS. Great post, thanks!!

Jan 30, 2007 02:21 PM

David R. Fuller

RE/MAX - Anthem, AZ

Just another suggestion(which could be very risky). If the buyer could show you that the lien had been paid and you were comfortable with that then you could have the title company hold your commission(in the event the buyer didn't have the cash). If the commission was not enough to cover it all at least the amount of cash the buyer needed would not be as much. I know it could be risky and you would probly need your brokers approval but the buyers would never forget you put them befor your personal gain. Probly a worst case senerio but better then just letting a deal die. Good job getting it closed though!!!

Jan 30, 2007 03:55 PM

William Collins

ERA Queen City Realty - Scotch Plains, NJ

Property and Asset Management

Shari,

Thanks for the post. Good to hear your back on track to close and you now have a new learning experience to help with future deals.

Jan 30, 2007 09:53 PM

Maggie Dokic /Indialantic | 321-252-8696

Magdalena Dokic - Indialantic, FL

Selling the beach in Florida's space coast

Good post Shari. I've learned that when I think I'm up against a wall, there's sometimes things that can be done. Congrats on your closing!

Jan 31, 2007 12:01 AM

Patricia, They had cash since they sold their home...luckily...

David, I don't know If I could hold my commission...of course in this case it would not have been enough to cover it anyway since they need $16,000. I'd really have to think hard about that one...

Jan 31, 2007 01:05 AM

Rob Robinson- Lehigh Valley PA

Bertrum Settlements (Title & Abstract) - Allentown, PA

David is right though.... there are many options, sometimes it just takes some brainstorming as opposed to what human nature does...throws us into 'flee' mode.

Jan 31, 2007 01:14 AM

Suzanne Marriott

Keller Williams Arizona Realty - Anthem, AZ

Associate Broker, CLHMS, e-PRO

That's the first time I've heard of something like that showing up on the Buyer side! Have seen it with more than a few Sellers.

Jan 31, 2007 01:32 AM

Christy Powers

Keller Williams Coastal Area Partners - Pooler, GA

Pooler, Savannah Real Estate Agent

Congratulations....that is great. Thank goodness there was a way to save it. It would have been horrible to not be able to close after everything.

Jan 31, 2007 02:48 PM

Kaushik Sirkar

Call Realty, Inc. - Chandler, AZ

Rookies or extremely experienced veterans - we can and should always be learning something new!

Jan 31, 2007 03:37 PM

Ahhh... we closed and funded yesterday without a hitch!!

Feb 01, 2007 02:14 AM

Rick Beal

Coldwell Banker Residential Brokerage - Portland, ME

Great job Shari. I will probably come across this someday and forget this blog! Hopefully the Active Rain search engine will jog my memory!

Feb 02, 2007 01:46 PM

Michael Jordan

Tarbell, REALTORS - Murrieta, CA

I learned something new thanks to you! Congratulations on double ending!

Feb 03, 2007 05:06 AM

1 2

3 - Chicago, IL

Great news! I honestly never even considered that possibility. I have always worried more about liens on sellers. Great information. Thanks!

Feb 05, 2007 03:49 PM

Nicole Arnold

The Views at Cranberry - Cranberry, NC

Thank you, Shari, for taking the time to educate us about this. I had not thought of this problem and have not encountered it (yet). I really appreciate learning about this title insurance security payment.

Feb 07, 2007 11:39 AM

Thesa Chambers

West + Main - Bend, OR

Principal Broker - Licensed in Oregon

Great post and nice to know - thanks for sharing.... have not had this happen with an IRS lein but had it with some smaller ones...

Feb 14, 2007 09:55 AM

Sherri Bauer

License Currently On Hold Due To Market Conditions - Manalapan, NJ

Wow great job! You saved the day.

Feb 23, 2007 09:46 PM

Anonymous

Margaret Rome

Shari, Thank for sharing. Even though I have had this situation, it is helpful to have this knowledge.

Feb 28, 2007 11:18 PM

#42

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

That was my comment above, guess I was not logged in. Congratulations on Member Highlight!!

Feb 28, 2007 11:21 PM

Robert McArtor

RE/MAX Components - Fallston Maryland - Bel Air, MD

Top Listing Agent for Baltimore and Harford County

Great Post Shari. Glad things worked out with that one.

Mar 04, 2007 01:20 PM

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