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Title Insurance Companies
#1
Help!

My husband and I are trying to close on our purchase of a lot in Leilani. Our deadline for closing is March 31st.

I didn't catch the mistaken in my first review of Preliminary Title Report, but when we received the proposed Deed, both the Deed and the Preliminary Title Report had the property going to us "subject to the following terms and provisions" of a prior deed where the sellers' parents were granted the same property. The sellers' parents are now deceased, so the property would go back to the sellers as their heirs-at-law.

I'm no attorney, but it seems clear to me that this wording is legally deeding the property back to the sellers in a roundabout fashion. Chances are we would never have a problem, but you just never know.

People at Title Guaranty are extremely nice, but so far have refused to see that there is indeed a problem and simply tell me that's the way they've always done it.

I've even suggested that the words "terms and provisions" could be changed to "covenants, conditions and restrictions", because it's obvious that's the part of the deed that they want to include on the exceptions.

Or they could even simply restate all of the conditions, covenants and restrictions contained in the deed.

At first I was told they weren't changing anything, and when I explained that we couldn't approve this paperwork the way it was, they said they would contact their lawyer and get back with us, I just don't know when and time is running out.

Should we try to get another title company or is it too late?

Do you think we would have same problems with any other title company?

Should we get a real estate attorney in Hawaii to give his/her opinion?

Any advice would be greatly appreciated.

Thanks!!!!

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#2
If it were me I would get a real estate attorney in Hawaii. It will be money well spent for his review and recommendations.

If you think health care is expensive now, wait until you see what it cost when it’s free...now here come the taxes.....
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#3
I would also get a lawyer.

It is not clear from your post what the situation with the property is. Having as much information as possible before contacting the lawyer may save you some money. I can at least suggest you have the following facts.

1. Whose name is on the currently recorded deed. If it is the seller's parents (deceased) then
2. Do the seller's have a Letters Testamentary appointing them Personal Representatives from the Court. My understanding (having just gone through a probate) is that any real property in Hawaii has to go through probate court. You can avoid probate by having a living trust but Title to the property would be under the Trust, not the individuals.




Larry
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#4
They can't change the wording to "covenants, conditions and restrictions" since your lot is already subject to the CC&R's of the subdivision. (It already should be in your deed unless you are buying in Phase I.) Deed restrictions go with the land and it seems that's what you have, a previous deed restriction. Feel free to call my real estate attorney Mark Van Pernis at 329-3551. (Check C-7 and C-8 of your DROA for closing extension options.)

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB
http://www.JohnRabi.com
Typically Tropical Properties


Edited by - John S. Rabi on 03/20/2007 07:30:04

Edited by - John S. Rabi on 03/20/2007 07:31:51
This is what I think of the Kona Board of Realtors: http://www.nsm88.org/aboutus.html

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#5
Thank ya'll so much for all of your help!!! You're the best!


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#6
Great news!! I was just in contact with Title Guaranty, and the attorney has agreed to make the change. Hooray!


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