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Buying from out of state investor

How can a buyer protect himself in the purchase of a home from an out-of-state investor, with unknown assets? What if the buyer needs to sue for damages?
  • March 28 2012 - Chesterfield
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Answers (3)

Profile picture for Ofe Polack
Out of state investors are no different from in state.  Make sure that you follow the advice of your buyer agent, have a home inspection and adhere to the timetable, then seek the services of a title company to ensure the title is clean and transferable.  Good luck! 
  • March 29 2012
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Profile picture for wordsmth
Pretty much the same steps you'd take in any purchase. As the previous answer says, a home inspection is advisable. But your concern seems to be, specifically, that it's an "out-of-state investor." Check early on to make sure that the investor has clear title to the property. That should come up in the title search, of course, but it's one thing that might arise more often.

Have a lawyer review the documents. That's not bad advice for any purchase, but is even more important here. And absolutely have a lawyer review them if the investor is selling directly, using his own documents, rather than the regionally-approved Realtor ones.

As for the investor's assets--known or unknown--that's not really your business. Is a house any more or less valuable if the investor has $20,000 in assets or $200,000? If your concern is that you'll need to sue for damages, then don't buy. Take the prudent steps--home inspection, review by a lawyer, etc. Make sure that the investor has the right to sell (or assign a contract) to you. If you want, though I don't think much of them, get a homeowner's warranty on the property. Do what's necessary up front to put you in your comfort zone.

Hope that helps.
  • March 29 2012
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HOME INSPECTION is key to be sure the property is in good condition.  Make sure your home inspector is insured. Your title co will deliver clear title and you'll have title insurance.  Being proactiove and hiring reputable professionals is the way to go.
  • March 29 2012
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