Dealing With Transaction Problems When It's Too Late

The story (linked below) about unexpected problems resulting from the purchase of a long vacant property through a county may not seem like anything that impacts your day. However, it should serve as a reminder to those involved in real estate transactions about having every piece of information you could possibly have on your side before it’s too late.

Although it appears the couple involved in the mess did their homework to get to this point, their thinking that an important matter would be completed by an independent third party could wind up costing them a deal. 

There are lessons to be learned for a lot of people. First, I don’t know whether or not this possible issue (an undetected County fee against the previous owner) was addressed in the title search. Whether it was or was not, I would think there would be issues to address with the title company involved. 

An attorney on behalf of the (potential) sellers should either be able to get an action in place during the brief open time frame. It may be a movement to delay the time frame and/or preserve the escrow period subject to the outcome on this matter. 

 

 

 

 

Investors should note the County in which this took place, to keep in mind when it comes to future decisions. Those that do or would consider investing in Kern County (California) properties would do well to set reminders to track the outcome of this matter over the coming weeks and months. If and when the matter is resolved to their satisfaction, it could be a positive to invest in Kern County vs. other counties where something like this could still happen.

Meanwhile, if and when the couple trying to sell the property gets this matter resolved in a timely fashion and completes the sale, that couple may have an excellent income opportunity to act as a research consultant to other local investors.

Whatever the result, it shows the importance of doing thorough due diligence, especially on a non-traditional property investment. If you still do not think you and your team needs a research person or team on your side, please read the below linked article, and contact my office. I’ll help make sure this doesn’t happen to you.