Recoding Cloud Or Interest In Title - Who Has Done It?
Has anyone here ever recorded a memorandum of agreement or an affidavit of equitable interest or some other document to cloud the title or show that you have interest in the property. If so, please give your State, County and if handy the Book and Page. Also, if you have recorded one, did the seller have to sign and have notorized.
Brenda
I have done this before and yes I had the seller sign and the document notorized. What are you specifically looking for here? Maybe we can help.
I am looking to see how many people have actually recorded something to cloud the title because I have a theory that it is all hyped up guru ideas used to sell course.
When was the last time you recorded something to cloud the title?
Brenda
You might think it's a hyped-up guru thing until you try to flip a property and have the deal fall apart.
1 month later you find out that you got screwed by your buyer. He went behind your back and offered the owner cash $2500 more than you were offering. Did this because he seen that you were going to make a $12,000 profit from the flip, so he decided to save himself $9500 and commit a fraudulant act.
With a cloud on that title, an agent would never have closed with that uncertainty hanging over ownership. The buyer and/or seller would have had to pay you a fee to erase the cloud.
This happened to someone I know, and he's used clouds ever since.
Does the above example happen alot... no. But it does occur between unscrupulous parties. Better safe than sorry. Best of all, you don't need the seller's Hancock. Just a statement stating you engaged in a legal contract with so-and-so on so-and-so date, get it notarized and record it.
Consider it insurance.
Yes, Brenda, this is not hyped guru b.s. I know two other investors who have done this with great success, and use it for those rare times when shady parties to a deal decide to act like kids
I have never done it, but I was the one posting on the other thread. I would not have posted it had I not spoken to both of these investors, each in different states.
Dave
Brenda,
Just wanted to let you know that I have recorded such documents in S.C. I know atleast ten other investors in my area who do it this way as well. I hope this clears up your speculation.
As I also posted in the other topic...
If the owner decides to challenge the validity of the claim to ownership and thus get the lis pendens removed, it's "see you in court time."