Selling a Property with Title Issues to a Cash Buyer

Possible Title Issues

The Title Deed Has Been Destroyed or Lost

Before you sell your home, you must demonstrate that you legally own it and have the right to sell it. If the title deeds for a registered property have been lost or destroyed, you must conduct a Land Registry search to locate your property and title number. You will then receive a copy of the title registry, the deeds and any documents referred to in the deeds for a minimal cost. This is true for both freehold and leasehold buildings. 



Deeds are not required to show title because the Land Registry maintains the definitive record of ownership for land and property.

A Mistake or Flaw in the Legal Title or Boundary Plan 

Generally, the register is conclusive about ownership rights, but a property owner who meets certain criteria can apply to update or rectify the register. Alteration is permitted to correct an error, bring the register up to date, delete an unnecessary entry, or give effect to an estate, interest, or legal right unaffected by registration. The court or the registrar can order modifications. If an application for change is approved, the registrar must correct the record unless special circumstances justify not doing so.

The Owner Listed on the Deeds Has Passed Away

When a homeowner dies, anyone intending to sell the property must prove their right to do so. The named individual will be granted probate if the dead left a will specifying who should receive the property. Probate allows this individual to transfer or sell the property.

Select the Best Title Company to Work With

This is a critical decision and investment plan to think about. Choose a company that is available for consultation, easy to work with, and proactive when it comes to title issues. If you find yourself constantly interrogating your existing title firm about the status of real estate transactions rather than having them reported directly to you, it may be time to look for a new title company. You can ask your cash buyer if they know any reliable title business that has been assisting with title issues for many years.

Is an Earnest Money Deposit Needed for a Cash Offer

Earnest money is the deposit buyers put down to show the seller they are serious about purchasing the home. The buyers part with this money to show the seller they are committed to buying the property, and to prove they can back up their offer with money. The seller then takes the property off the market. And this first payment will be put toward the total cost of the home. (1)

The earnest deposit ranges from 1% to 5% of the home’s purchase price.

How to Sell a House with Title Issues to a Cash Buyer

Selling a property with title issues can be complex because the process requires careful navigation of financial and legal difficulties. Here are the steps you should follow when selling a property with title issues to home buyers Louisville, KY.

• Recognize and comprehend title issues: Thoroughly examine and identify all title concerns linked with the property before proceeding with the sale. Liens, encumbrances, unresolved legal problems, and public record inaccuracies are all common title concerns. Engage the services of a competent title search business to ensure a thorough examination of the property’s history.
• Handle and resolve title issues: Once the title issues have been found, work on resolving them. This could include repaying outstanding bills, removing liens, or settling legal disputes. Consult with real estate attorneys and title professionals to find the best options. Because some difficulties may take longer to resolve, beginning this procedure early in the sales process is critical.
• Calculate the market value: Engage a real estate appraiser or agent to evaluate the property’s market worth. Knowing the property’s fair market value is critical for determining an appropriate selling price regardless of title concerns. We buy houses Louisville, KY companies frequently want reductions for complicated homes, so be prepared to negotiate.
• Put together a professional team: Assemble a team consisting of a real estate attorney, title company, and possibly a real estate agent who has handled difficult transactions. This team will provide the skills required to manage legal complexities and ensure a seamless transaction.
• Disclose title issues to potential buyers: Complete transparency is critical when selling a property with title concerns. All discovered title issues should be clearly disclosed to potential buyers. Cash buyers used to dealing with such properties may still be interested, but open communication is essential throughout the process.
• Bargain with cash buyers: Enter into negotiations with prospective Louisville home buyers. Prepare to address the discovered title issues and consider pricing the property competitively to account for the difficulties. In exchange for the simplicity and quickness of a cash transaction, cash purchasers may be willing to accept cheaper prices.
• Establish a clear and comprehensive purchase agreement: Once you’ve reached an agreement with a cash buyer, work with your attorney to create a detailed purchase agreement. This document should address title concerns openly, detailing how they will be addressed and providing contingencies in the event of unforeseen challenges.
• Effectively close the transaction: Work with the title firm and other specialists to guarantee a smooth closing. Cash transactions are generally speedier than traditional sales, but it is critical to be diligent in resolving any outstanding title concerns as soon as possible. Provide all required papers and be ready for any last-minute negotiations or changes.