Question:

Hello, I don’t see recorded liens in this report findings but I do see a Lis Pendens, how does this correlate to potential liens and how might it affect the property that I am considering purchasing. Do you provide title opinions or guarantees?

Answer: 

Andrew,

We do not issue insurance policies to guarantee the information for purposes of closing a transaction.

Our clients use the company’s services for research and generally as a starting point – similar to a preliminary title search.  Just like conventional companies, we cannot guarantee the information is accurate for purposes of closing a transaction.  That is done after escrow is opened, a title commitment is made and a title insurance policy is issued.  All that said, we do issue refunds in the rare event that our reports contain inaccuracies.

Unfortunately, your email was cut off and we cannot view the information you provided.  I will be authorized to issue a full/immediate refund upon receiving evidence of the inaccuracies. Please forward legible/complete copies of the recorded documents to which are referring.  If the documents were not properly recorded with the county, they will not appear on the reports as the reports are compiled using recorded document information.

We look forward to hearing from you.

Thank you,

Jeannie B.

Client Services

Client response:

Jeannie,

Thank you for your response. I have attached copies of the court orders.  They appear to have been filed correctly.

I am interested to learn if they were filed in error or are fraudulent.

Andrew W.

President,

DXX Investments LLC

Answer:

Hi Andrew,

Thank you for providing complete copies of the documents.  It appears that the documents were filed with the court – not recorded with the county.  However, the required Notice of Lis Pendens (which means “Notice of Litigation Pending” in Latin) appears to have been properly recorded and is reflected on our report.  (See attached report excerpt, page 3). The purpose of the requirement to record such a notice is to give the general public, including interested parties, notice that there is litigation pending involving the subject property that may affect the title.

I may have mentioned in my previous email that a large portion of our clientele are real estate investors.  Many of those are seasoned investors who regularly purchase property, use our service for quick/convenient research purposes and often times calculate their own risk and close their transactions without title insurance.  However, seasoned investors recognize that a Lis Pendens means there is litigation pending and that they need to do further research.  Our Full Chain of Title Report includes the items listed in the service description.  Additional document images can be obtained via our abstract feature or directly from the court clerk or county recorder.

If you are new to auction purchases and/or if this happens to be the first time you have seen a notice of Lis Pendens, we recommend that you consult with a real estate attorney for detailed information about the auction process.  We would also recommend that you consult with an attorney about this particular transaction.  Were all the documents properly served to all interested parties?  Why weren’t the amounts part of the auction price configuration?  There is usually a minimum bid required to cover all lien amounts, but the laws vary from state to state.

Again, while we also serve the general public, most of our clients are professionals who enjoy the “no frills” efficiency of our service and only need to communicate to the extent they want or need.  We do not contact our clients or anyone to solicit business or for any reason.  We only respond to direct written requests for contact as we do not have a call center and maintain all communication threads in a protected archive for legal reasons.  Also keep in mind that our flat-fee services includes consultation, so if and when you use our service in the future, please realize that we are here to answer any questions you may have about anything on the report.  We cannot provide legal advice, but we can certainly answer other questions, make recommendations to consult with an attorney and provide you with a referral to an attorney in your area.

Finally, most of our investor clients use the “Home buyer’s Package” or the “Full Property/Owner Lien Report.”  If you do not want a profile report on the financial institution owner, you may request to substitute it with a profile of the previous owner.  Many clients make such a request because they want to view potential judgments against the previous owner that for whatever reason should have been included in the minimum bid but was not.  This situation sounds similar.

We are open every day of the year, including holidays.  All service orders begin processing immediately and are completed within 1-12 hours (but usually 1-4), unless otherwise noted on the service descriptions.  Inquiries must be in writing and are responded to within 1-24 hours (general rule but there are exceptions depending on the research required to respond).  We do not market or advertise and the business is 100% referral-based.

Please let us know if you have additional questions or need more information.

Thank you,

Jeannie B.

Client Services