I have a nice little deal with two parcels, one with a house, in Lavaca Co that is going sideways and needs curative title work. The CAD site list two owners, both who are alive and want to sell. Once the title work began we discovered there are more heirs in the mix and title can't find them all.

Leads me to all kind of questions. Namely, how is the CAD ownership in my two sellers name as 100% but they are not the only heirs? Isn't ownership determined by a recording a deed? Apparently the most recent deed on one tract is from 1910.

I need to learn more about how twills and probate work in deals like this. Anyone have any resources they have learned from?

Early in my career I did a lot of RE work and did all the work for 2 different title companies. If this has already been submitted to a title company, go talk to the title company and find out what lawyer they use. See if the title company's lawyer will do the curative work for the title company or whether you need to hire someone to do it.

And if you are the one who has to do the curative work, using the title company's lawyer will be your best choice.

Generally, you are correct that appraisal districts rely on deeds to determine ownership. However, title may transfer without a deed like in probate (through probated wills, affidavits of heirship, etc.). Even when recorded, deeds are not always absolute proof of title since you do not need to have actual ownership to record a deed (in such instance, the deed would be ineffective at transferring title, but can still cloud the chain).

When title is passed through probate or intestacy (without a will), it often leads to issues like the one you described since the transfer may not be properly documented. The individuals may hold themselves out as the owners by paying the taxes, registering the house as their address, and the taxing authorities don't really care as long as they get paid so they reflect them as the owners unless there is clear evidence to the contrary.

A title attorney may be able to cure the deficiencies by simply showing the passage of title through the recording of old deeds/probate records, or this may be more difficult and require that heirs relinquish their claim to the property. If you have a good relationship with the seller, they may be able to explain the family history and work with the other heirs to get the title documents needed to clear title.

Yes sir; I got their recommended guy today.

Really great, thanks for the info. I know a guy here in SA that does a lot of these deals. I'm thinking I'll see if they want me to assign it to them and learn from them.

7 heirs from the mothers brother or some such ***** I hope I can help them out. To complicate matters my seller passed away on the 21st, heart attack. His wife called to let me know and let me know she still wants to go through with the sale. I believe it's a need now. He was a super nice dude and i enjoyed getting to know them.

Might consider paying cash, holding as a rental, clearing up via adverse possession in the future. Youd obviously need a steep discount. And you need an attorney to dig into it to gain a full understanding of your risk. Maybe heirs will sign over their interest for a fee, what's the chance said heirs would ever rise to the surface to make a claim before adverse possession could be finalized, etc?

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Early in my career I faced this scenario and ended up selling to one of the stubborn family members.

I'll look into this route too. It doesn't sound like some of the heirs are even known to be alive anymore, they certainly haven't had contact with my sellers family at all.

Thanks for the reply.

I've had a ton of leads in Lavaca Co with undivided interest that have one person stopping the deal. I try and buy the interest that I can but it's for cents on the dollar and I've not been successful yet.

I do have one deal that I just opened escrow that is undivided interest and never been probated from great grand dad. It's a LONG shot but seller says he and his sister have records to prove it's theirs to sell. Under contract for $1k/ac and it's worth $10/ac.

If nothing else I'll learn a bit more about title process for these deals.

Most title matters can eventually be cleaned up, but it may take time and a lot of leg work. Outside of an attorney that can work with the title company, you may on occasion need to hire an investigator to track down heirs, etc.

Yes sir, I agree. The guy in SA that I mentioned above specializes in deals no one else will touch and he's done some amazing deals. There is gold in them if bought right.

Just curious, it seems like you are concentrating in Lavaca county. We live in the county, is there a development or infrastructure project not released that is reason to invest in the county land?

We use a couple of criteria to select counties to mail next including days on market, new listing:sold, number of parcels, sold data availability and proximity to major markets. We mail every raw land owner between 3-50 ac that show less than 15% improvements. It's been our opinion that counties in the wedge between Hwy 90 and IH35 are all pretty good bets. We're mailing Gonzales Co right now.

Once we have more experience we will look at other markets. We're also learning new ways to generate leads for other real estate. Our plan is to use land deals and wholesale deals to generate cash to be able to hold some deals that make sense.

I'm yet to personally see anyone use it, but this sounds like a Property Code Chapter 29 issue if ever there was an opportunity at one. I'd ask my attorney (not the title company's, at least at first) about that possibility.

You cant base title on CAD, they simply go off whomever is paying the taxes. Now obviously you dont pay taxes on something you dont own but in many cases a sibling or someone related is paying the taxes but there are other owners/heirs out there.

You need a landman to go out and gather all documents of title affecting the tracts you are interested in and then have an attorney review those documents to tell you ownership.

02Ag, I do not like tedious work. But I looked at title work like a mystery, which it can be.
Hope you get title cleared up and learn a lot.

I think this is essentially what title is telling me needs to happen. Get a judgment that allows them to sell. Even said portion of funds can be held in escrow for a time in case other heirs come forward. At least that's what I think she was saying, she was somewhat cryptic.

Yep title schooled me on this pretty well yesterday. I asked her how to know that in advance and she said only thing you can do is open escrow and let them go to work on it or do the research yourself in advance. I think I'll choose the former.

She also said they have tons of files that just dead ended and still sit there. Made me wonder if I can get any leads from it….

Thanks man, the program I learned from (Land Academy) does not advocate for this type of work either. If everyone is not alive and wanting to sell they pass. I figure I am early enough in my journey that working every possible lead as far as I can can't hurt since I have the time.

I also spoke to my friends here in town and almost all their deals need curative work. I think we are going to bring them into this deal and let them work it. Best way to learn is to emulate others right?

You could file a Suit to Quiet Title against all those affected. It's time consuming and you'll need an attorney.

You can buy and sell an undivided interest. Just make sure to only give a special warranty deed if you sell. As is.

We have title commitment back. It's a tough one. Actually two tracts, one 1.5 ac and the other is 5 ac.

The 1.5 ac tract is kind of traceable to my sellers family by a marriage but title can't exactly tie it to my seller. That deed is from 1941 and we need to track down the heirs of the name on that deed.

The 5 ac tract is worse. The most recent deed is from 1910 and while my seller says the name is their family, there are no known ties to my seller and title hit the same wall, all known descendants are dead.

Title recommends my seller have the courts appoint a Receivership appointed while the heirs are tracked down. Anyone have any experience with that route or have any other advice?