In this news article an old woman bought a homen from Fannie Mae for cash. The buyer didn't realize that the property line went right through her home. I read this and I am thinking that a lot of people didn't do their jobs correctly. My title officer would have picked it up (as would most others). Fannie Mae should have picked it up before they marketed the home. The Realtor should have read the comittment document. The net result is that this old lady owns half a home.
Without the loan underwriters looking at this transaction everyone else must of gotten a bit lazy. It's easy... It's cash...
Well just cause it can close doesn't mean it should. We owe it to our clients to try to protect them. The title officer should have made it clear to the lady that she wasn't buying the whole home. The Realtor should have picked it up. Seems to me that someone should be liable. I don't particually like hiring lawyers but in this case I would if I were the buyer.
If the title officer or the Realtor asked the old lady if it was OK if she only owned the front half of the house she would have said NO. I know we say everything is explained in the closing documents but I have rarely seen clients read them. I am so happy when they do. The loan officer is sitting... The title officer.... and Debbie Holmes , the Realtor....I am the only one with a real smile on my face because I am happy my client is reading a very important document.
So title officers, Realtors and underwriters and clients read that pesky plot map and make sure you are buying what you think you are. Make sure you are not like the old lady who now owns the front half of her house.