A new purchase with some issues

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Q. My husband and I are negotiating to buy property in upstate New York without a bank loan, and it has been going on for almost two years because the seller has violations, including a large concrete pool that was built onto the neighboring property. For some reason he doesn’t want to clear the problem, and my attorney has finally told us that if we really want the property, we should just close without the clear title. The reason is that the owner has come down in price a couple of times to one that’s hard to pass up. Does it make sense to buy this property without clear title?

A. First, even though I’ve bought and sold property several times and work with people every day who are involved in similar issues, I’m not an attorney, and can only suggest you get another attorney’s opinion, as I did in response to your question. There’s something strange when someone won’t clear problems with a property. You may be inheriting judgments, tax or business liens, or other encumbrances that a title company would reveal to you, unless they have already.

Attorneys told me that a cash deal could close, but you must do your research and uncover any and all problems with the property. Not having a title company give you a thorough investigation and document clear title could end up with you holding the “hot potato” the seller doesn’t want to clear up. You may not be able to sell the property when the time comes, either.

Over the years I’ve investigated open permits when beginning a project and discovered problems that could end up being a nightmare for you. I’ve seen old violations buried in the records revealing environmental hazards that could cost millions to clean up. In one case, the property was found to have once had a gas station on it. During construction, a backhoe uncovered a 1938 oil truck, still loaded with oil. Work stopped for months during an environmental cleanup. Another excavation unearthed a 20-foot-deep mixture of car parts and garbage. I’ve also uncovered records of a forgotten water district viaduct that was right where a building foundation was to be located, making it incredibly expensive to construct without constant pumping.

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