ajfries Posted August 1, 2014 Share Posted August 1, 2014 Feel free to skip this first paragraph. It's just background info/rambling. :) There's this awful run down trailer next door to us. We heard through the rumor mill (small town) that it will be up for auction in 6 months or so. The owner does not live there; but someone is currently squatting I believe. Anyway, we're trying to get a hold of the seller to see if he'd be willing to sell it to us before it goes up for auction (then we could build a house on the lot). Apparently the owner doesn't have a phone, but we're friends of friends with a family member that I have gotten in touch with. IF we were to get a hold of the owner and he was willing to sell, what do we need to do? We're certain there is at least one lien on the house from the city since the water has been turned off & I know he hasn't paid this years taxes, so we'd have to do a title search (is that right?) Would a realtor be helpful in this scenario? We won't be needing to get a mortgage, if that matters. Quote Link to comment Share on other sites More sharing options...
dirty ethel rackham Posted August 1, 2014 Share Posted August 1, 2014 No experience with this, but an real estate attorney would be helpful. We bought a FSBO, did not use the services of a realtor, but did use an attorney who checked over the contract and made suggestions. Quote Link to comment Share on other sites More sharing options...
TammyS Posted August 1, 2014 Share Posted August 1, 2014 Do you have to get a realtor? No. But they can be very helpful in dealing with people by keeping it a simple business proposition. People very often have exaggerated ideas of what their property is worth, then get offended by your offer because of that. Realtors (good ones) are experienced in keeping this business-like and avoiding offending the seller. The realtor can also guide you through the process of getting rid of the squatters (which will be an issue you'll have to deal with, if it isn't done before the sale). In any case, you'll want a title search and possibly an engineering inspection of the property's improvements (well, septic, electric service). Be prepared to pay the realtor yourself. There's a good chance the seller can't or won't. It will be money well spent. ETA: your realtor may also be able to recommend services of people to clear the property of the trailer and misc structures.....there is a lot of variation in how that can go...sometimes you'll pay, sometimes you can get someone to do it free, if there is enough for a salvage trip to be worth it. Quote Link to comment Share on other sites More sharing options...
catz Posted August 1, 2014 Share Posted August 1, 2014 I've both bought and sold a house by owner, and both times I hired a realtor for a flat fee to just help with paper work and keep everything moving. It was definitely worth it. Not every realtor will do that. We had 2 different ones that advertised as helping in for sale by owner situations. Quote Link to comment Share on other sites More sharing options...
ksr5377 Posted August 1, 2014 Share Posted August 1, 2014 You need a real estate attorney. Quote Link to comment Share on other sites More sharing options...
milovany Posted August 1, 2014 Share Posted August 1, 2014 While a real estate attorney would be nice and if you can afford one, go for it, it's not 100% necessary. We've bought AND sold a house or two on our own without one. Get some official forms from a place that sells these types of forms, fill them out, get the signatures and then take them to the title company. Do all your due diligence on your own (building inspection, etc.). The title company can walk you through the process, telling you what they need and when. That's been our experience anyway, YMMV. Quote Link to comment Share on other sites More sharing options...
ajfries Posted August 1, 2014 Author Share Posted August 1, 2014 I feel fairly safe going the 'mostly DIY' route on this one, within reason. As far as I know, the owner inherited the property, and since then there's been a series of family & friends living there, but no one's been paying bills on a consistent basis. I think maybe I should get a hold of the realtor who was showing us houses a few months ago & see what insight he can offer. I wouldn't mind hiring him, if that's all I had to pay for :D We're really trying to get this on the cheap, since we're just demolishing the place anyway and the owner clearly has no sentimental value towards the property. Quote Link to comment Share on other sites More sharing options...
Ottakee Posted August 1, 2014 Share Posted August 1, 2014 I would make sure to get a clear title search done on the property at minimum and specify that the water/septic, etc. be left in usable condition (some disgruntled squatters, etc. will ruin the systems on purpose because they are mad they have to leave). Make sure to check any and all back taxes owed, if the owner is the SOLE owner of the property, any leins, right of ways, easements, etc. on the property. Some of these can go back 100+ years but still be legally binding Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted August 1, 2014 Share Posted August 1, 2014 also - if someone is squatting, check what needs to legally be done to evict them. squatters usually don't go willingly. Quote Link to comment Share on other sites More sharing options...
zoobie Posted August 1, 2014 Share Posted August 1, 2014 also - if someone is squatting, check what needs to legally be done to evict them. squatters usually don't go willingly. That's a big reason to get an attorney. Our state requires that closings be done by an attorney, and their office does a title check. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted August 1, 2014 Share Posted August 1, 2014 I feel fairly safe going the 'mostly DIY' route on this one, within reason. As far as I know, the owner inherited the property, and since then there's been a series of family & friends living there, but no one's been paying bills on a consistent basis. I think maybe I should get a hold of the realtor who was showing us houses a few months ago & see what insight he can offer. I wouldn't mind hiring him, if that's all I had to pay for :D We're really trying to get this on the cheap, since we're just demolishing the place anyway and the owner clearly has no sentimental value towards the property. In my experience you don't need an attorney......the abstract company should do all that is necessary to be sure you have a clear title. I have bought two homes without a realtor or attorney. One with cash and one with a mortgage. Didn't have any problems. Quote Link to comment Share on other sites More sharing options...
JFSinIL Posted August 1, 2014 Share Posted August 1, 2014 Get an attorney well-versed in real estate laws and closing. Just eavesdropping on my hubby (attorney, also injured in our car crash, who is trying to work from home amidst our hospital beds, wheelchairs, etc) try to set up a couple real estate closings and get the paperwork and inspections etc. done...you do NOT want to tackle this on your own. Ps I hate typing on this ipad! Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted August 1, 2014 Share Posted August 1, 2014 That there is a squatter changes things. It's not the same as a renter. Quote Link to comment Share on other sites More sharing options...
ajfries Posted August 1, 2014 Author Share Posted August 1, 2014 I mean, I guess he could be paying rent, but the last time I talked to him he "hadn't been able to get a hold of the owner". The 'squatter' is well known around town, he moves from place to place, staying with friends & whatnot. He was trying to clean the place up, but? I mean, there's no running water! He's a nice enough guy, I can't imagine there being too many issues, but one never can tell...I never even thought about the fact that he has rights, too. Quote Link to comment Share on other sites More sharing options...
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