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Message
Weird disclaimer on a real estate listing
Posted on 3/11/25 at 3:46 pm
Posted on 3/11/25 at 3:46 pm
My daughter is looking to buy her first house. She found one she is interested in but I noticed the following on the listing. What the frick does this mean? Sounds to me like a situation to avoid. If it matters, it’s in south AL.
“This is an equitable interest listing where seller is selling only an option contract or assigning an interest in a contract, such as a purchase and sale agreement or a contract for deed. In this situation, the seller does not have legal title to the property, but the equitable interest gives seller the right to acquire legal title. Buyer to verify all information during due diligence.”
“This is an equitable interest listing where seller is selling only an option contract or assigning an interest in a contract, such as a purchase and sale agreement or a contract for deed. In this situation, the seller does not have legal title to the property, but the equitable interest gives seller the right to acquire legal title. Buyer to verify all information during due diligence.”
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Posted on 3/11/25 at 3:49 pm to auwaterfowler
quote:
Sounds to me like a situation to avoid.
Posted on 3/11/25 at 3:54 pm to auwaterfowler
I have never heard of that wording, is this some sort of tax sale and forcing the owner to sale b/c someone else has bought the taxes and can't quiet deed the property?
Posted on 3/11/25 at 4:04 pm to auwaterfowler
Dealing with a wholesaler possibly?
Posted on 3/11/25 at 4:09 pm to auwaterfowler
Sounds like they’re selling a quitclaim. Could be a good deal. Could be an awful deal.
Posted on 3/11/25 at 4:49 pm to lsuconnman
That sounds like a wholesaler.
Posted on 3/11/25 at 6:15 pm to auwaterfowler
Maybe the seller “owns” the property through an owner financing arrangement.
This post was edited on 3/11/25 at 6:16 pm
Posted on 3/11/25 at 7:59 pm to auwaterfowler
Could be a ton of stuff. Could be an adverse possession claim. In any case, conveying legal title to the property should be a condition to closing. And it sounds like they should provide you a warranty deed.
Posted on 3/11/25 at 8:26 pm to hey benji
Is that really how wholesalers operate?
I’d be unsettled if someone sold me an option contract and concluded with a disclaimer that due diligence is my responsibility to ensure the wholesaler and seller were on the same page.
I’d be unsettled if someone sold me an option contract and concluded with a disclaimer that due diligence is my responsibility to ensure the wholesaler and seller were on the same page.
Posted on 3/11/25 at 8:29 pm to auwaterfowler
That's a wholesaler. Can be a good deal if you can navigate it legally and know what you're doing. Don't touch if you're not an experienced RE investor
This post was edited on 3/11/25 at 8:30 pm
Posted on 3/12/25 at 8:56 am to auwaterfowler
Seller purchased with a quitclaim deed. Your daughter's title company should be able to determine if any irregularities occurred in the past. It would be interesting to know why seller did not purchase using a warranty deed.
Posted on 3/12/25 at 9:02 am to lsuconnman
quote:
Is that really how wholesalers operate?
Not really. These are not usually listed. Its usually a situation where wholesalers have a text or email list to investors. This is a bit strange
Posted on 3/12/25 at 10:02 pm to auwaterfowler
It could be one of several things, they may have an option or a right of first refusal. There isn’t anything to be that stressed about, the offer should be contingent on seller conveying title via warranty deed. If she gets that at closing, her mortgage company and title insurance company will be satisfied, as she should be. If the seller can’t convey, then it won’t close.
Posted on 3/14/25 at 8:06 am to SpencerRob
This the normal practice, but OP will want to ensure contract states that the property ownership is conveying via warranty deed.
Posted on 5/22/25 at 3:45 am to JeannaFxs
Definitely sounds like a wholesaler. I would navigate carefully, but it wouldn’t scare me off. I would definitely buy title insurance.
Posted on 5/23/25 at 7:13 am to auwaterfowler
Pre Construction sounds like to me..someone has an option
Posted on 5/23/25 at 8:47 am to auwaterfowler
The seller is selling his contractual right to buy the property from someone else who owns it. Read the fine print and get title insurance.
Posted on 5/23/25 at 11:03 am to geauxpurple
The listing Broker is not doing their job or providing the seller proper service by not clarifying the total situation for the buyers/buyers agent. Listing broker should have information from a title company available to buyers to avoid the issues that come with trying to deal with "Special Circumstances".
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