Getting your first, or fiftieth, deal under contract is always exciting. What’s not exciting however, is bringing your contract to your attorney or title office for a quick closing and finding out that you didn’t quite get the whole story from the seller and now you’re going to have to sift through some title issues to purchase.
What do I mean by that? Well, I cannot tell you how many times I’ve received a contract signed by Betty Buyer and Sally Seller and things weren’t quite what they seem…I open the file and start my title search and lo and behold title is in Sally Seller and Shifty Seller. After further investigation, I find that Shifty Seller was Sally’s husband, who died intestate (with no will) six years ago, and was married previously with 3 kids from his first marriage. What a swift turn in events! Why does that matter, you ask? Without getting too deep in the heirship rabbit hole, this scenario likely calls for not only Sally Seller to sign off on all docs, but Shifty’s three kids from his first marriage must sign and there must be either an administration/probate of the estate or an Affidavit of Heirship.
Now that quick closing with Sally Seller is going to take just a little bit longer and likely cost a little bit more. Not as exciting as you thought, huh? But, there’s a way to avoid these issues popping up unannounced and causing you immense pain and suffering—ask questions!
I’ve narrowed down what I think are the three most important things to ask your seller BEFORE you get a deal under contract to make sure you know what all is required so when you bring your contract in, you have an expectation of what’s needed to close.
1. Marital/Title History
One of the most important things to get from a Seller is the Seller’s marital/title history. Especially if the Seller is just one individual. Often times the Seller has either gotten divorced or maybe their spouse passed—but nothing was done with the spouses portion of the estate. So if you have Seller ready to sign off on a contract, but they say yes they are married or that someone else was on title (like their sister)—find out what happened to them, where are they now, and did they deed their portion of the property to Seller. If not, you can expect to deal with that issue at closing.
2. Verify Personal Information
Getting your Seller’s personal information is imperative when getting a property under contract. Not only can this information help verify liens/judgments, it will ensure that you’re getting the correct individuals to sign off on the paperwork. Some personal information to verify with your Seller is: Full legal name, date of birth, driver’s license number, last four of SSN and past addresses (from the last 10 years). Obtaining this information when getting the property under contract can alleviate the stress of trying to get this info after the contract has been submitted.
3. Estate Information
If a Seller tells you that their husband was on title, but he passed away, you’ll need to get as much information about the estate as possible. For example—ask whether there was a will. If so, was that will probated? Who is the executor? No will? Well, that means you’ll likely need to do an affidavit of heirship. Find out as much information as you can about your deceased seller and their family history. You’ll also need to find two disinterested witnesses that knew the seller for 10 or more years. Examining the deceased individuals history, along with any probate records available, will ensure that you have all necessary docs that your closing agent will require.
While these three things might seem insignificant, they can be a HUGE help to you and your closing officer. You also won’t be hit with any surprises after the initial title search has been performed. To help you gather this information, I have a Seller Checklist as well as an Heirship Info Sheet under the “Forms” tab on my website that you and your seller can fill out so you’ll have a head start to the finish line.
If you’ve got a closing that you’re not quite sure what to do with, give me a call! I’m happy to help you get your closing moving towards the light. I’m here for you, from contract to close.
Disclaimer: the information provided in this article is for general educational purposes only and is not to be considered legal advice that anyone may rely on. Every situation is different and if you have a legal issue you should consult an attorney or related professional regarding the specifics of your individual circumstance. This firm does not represent you or anyone else unless it is expressly retained in writing to do so.