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Wisconsin- Sale by Owner to Neighbor-Procedure?

Posted by tyjy (My Page) on
Mon, Aug 8, 11 at 18:40

Wisconsin question:

Summary:
100+ acre lot w/run down cabin on it, an easement to forest, and an easement to river was gifted to my parents by grandparents (now deceased)via Warranty Deed.
Property was split up by parents and most land sold to neighbor #1. Remaining 3 ac. w/run down cabin and both easements were kept by parents but promised to neighbor #1 if he digs a pond and then after parents death he'd buy it on land contract. No pond= land contract null & void.

Neighbor #1 didn't put in pond and then claimed he "didn't know he didn't own the easements". Took my parents to court and parents gave up fight because it'd cost another $10-$20k. Result: neighbor #1 got the easement to forest, parents got the easement to river and kept 3 ac and run down cabin.

Fast forward two years and my parents gifted the 3 acres, run down cabin and river easement to me (via quit claim deed).

The property is located 5 hours away.

Now a neighbor #2 wants to buy this property, as is. We agreed on a price which is a huge bargain for him, basically just for the land not improvements. We said if there's any extra costs involved in the sale then he'd have to pay it.

What is the easiest way of accomplishing the transaction? Could we simply sign a quit claim deed and he'd wire us the money?

We're 5 hours away! I'd like to do my portion from my area and he could do his from his area.

Is there any reason for a title search or title insurance if we're just selling it as is & Quit Claim Deed? I think I understand with a QCD my parents gift to me has no title obligations and a QCD to this buyer would also have no obligations (no purchases or liens since I owned). I do not know if my grandparents ever had a "title search" done when they gifted it to my parents via "Warranty Deed" and my grandparents are now deceased. I don't think there was any purchases or liens done by my parents & they just signed a QCD anyways. Are any of us vulnerable?

I doubt if the buyer/neighbor #2 will care what type of paper we use to get the property sold. The thing I worry about is when neighbor #1 finds out he'll make neighbor #2 life challenging (they have negative history too).

Mainly, I just DO NOT want anything coming back to haunt any of us in my family. We want to be done with it as we're getting old and selling things off. Neighbor #2 can fend for himself and is fully capable.

Thanks for some advice!


Follow-Up Postings:

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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

"What is the easiest way of accomplishing the transaction? Could we simply sign a quit claim deed and he'd wire us the money?"

A quit claim deed would be one way.

Keep in mind just bout every state has specific requirements for deeds.

ANY dead carries the risk of a buyer coming back if the deed (or the title it represents) is bad.
A quit claim has the least possibility of splatter since you are conveying whatever interest you have, even if it turns out to be nothing.
Everything from the wording to the font and page size.


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

"What is the easiest way of accomplishing the transaction? Could we simply sign a quit claim deed and he'd wire us the money?"

If you have to ask, you don't have the knowledge required to do this on your own and make certain your interests are protected. Hire an attorney.


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

Is an attorney (near where I live) be the best choice or maybe a title company up in that county?

Does anyone think I have to do anything about title insurance or would having an atty handle the Quit Claim Deed and serving as a go-between for the wire transfer be sufficient?

Would we have to start with some sort of written "offer" or is verbal fine and the QCD with a complete description of the property specifying what's being sold be enough?

Thanks for your guidance.


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

If title companies are used in your area they should be able to draw up and record a correct deed.

title insurance is purchased by buyers, not sellers.

You really should have an attorney handle this.
It appears you do not have enough experience in RE sales to even know what steps must be taken.


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

Thanks for the help.

I just wanted to save money and/or unnecessary expenses so was looking for a simple, straightforward way to do it myself.

(BTW, in Wisconsin particularly, (not familiar about other states) the standard language in an "Offer to Purchase RE" is essentially that the "seller" provides title insurance. But I'm under the impression that, obviously, anything can be negotiated and put into writing if other agreements have been made.)


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

if they use title agencies in WI, then pick on near the property. they can mail you things to sign, so you don't have to be present for closing. Try 2 of them and ask for quotes before you commit.

basically, the buyer will pay for all costs, so simply give the quotes to buyer and let him choose.

there likely are some other costs, such as taxes or transfer fees and also recording fees that the county or municipality charges. these will be spelled out on the quote for closing.
you don't have to have a written contract, as verbal can go to closing if everyone still agrees to the verbal terms, scouts honor basically. the problem is, verbal cannot be enforced. so you better write something as far as a contract so buyer doesn't then force you to pay closing costs.

I lawyer can also do the contract and closing. get quotes from them too. I found that lawyers charge more for closing than a title agency. but it depends on state law whether a lawyer must handle closing. in GA, lawyer must do it...in other states, title agency can do it.


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

sweet tea: Thanks so much for the specifics. That's more what I was looking for.

I still may hire an atty if I find out our situation is more complicated but at least I have some direction now. Thanks again!


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

Hire a lawyer. I used a lawyer for advice and title company for the closing. Now 5 years later an error has been discovered. The title company failed to correctly word the Warranty Deed right. In process of correcting so new owner has a clear title, which caused extra expense for an attorney on my part in order to make sure it is done right this time.

Doing the sale alone could open more cans of worms for you.


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

"you don't have to have a written contract, as verbal can go to closing if everyone still agrees to the verbal terms, scouts honor basically. the problem is, verbal cannot be enforced. so you better write something as far as a contract so buyer doesn't then force you to pay closing costs. "

The stature of frauds makes verbal contract for real property invalid from the start in almost every state.

That would mean you have NO contract, not just one that cannot be enforced.


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RE: Wisconsin- Sale by Owner to Neighbor-Procedure?

Original Poster (OP) here:

I just wanted to let anyone reading this to know how things went down...

1. Gathered advice from the great helpers on GardenWeb and a helpful forum I found at http://forum.freeadvice.com/)

2. Most told me to use professionals. I did and didn't.

3. I pretty much wrote up the official Wisconsin Offer to Purchase Real Estate the way I wanted it (crossing off some things, writing in other things...) and the buyer signed it. I thought I was so smart I'd catch everything (Me=Anal personality!)

4. Contacted a Title company up there to handle closing & money. Got a call they were missing the ONE DOCUMENT needed for clear title! WHAT?? Thought it was settled after that lawsuit? LUCKILY it was! I had a copy of the Release of Option to Purchase and the Release of Lis Pendens which cleared the title & scanned/emailed it (WHAT IF I DIDN'T HAVE THOSE PAPERS?)! Excuse: tried to pin it on "a new office girl". Anyways, THIS was nerve wracking!

5. When closing papers came to me for signing I found a Warranty Deed instead of a Quit Claim Deed which I wanted. When I asked Title Co. to switch it, they said it was on the Offer! THAT turned out to be MY DANG ANAL FAULT! I thought I was careful with the Offer to Purchase but right in there was the words we'd supply title by "warranty deed". So (because I had no lawyer, and I wanted it a QCD (because I think I'm so smart~and wanted "less splatter" as BRICKEYEE said above), we had to call the buyer, verbally get his agreement, figure out how to write an Amendment to the Offer to Purchase, which needed signing at closing cuz it was THE NEXT DAY!...(nerve wracking!)

6. The wording on the "Commitment" (title insurance) was like Greek to me and I was worried we didn't have an assurance it was a clear title for sure cuz I didn't understand it. Looked back at old properties paperwork I had in the archives to compare and finally decided it's fine. (Wonder if it REALLY is?)

7. Closing did go well and I'm holding my breath that it REALLY IS forever out of our hair. (KRISSIE: I'm thinking of you on this one!)

WHAT WOULD I DO NEXT TIME??
Well, I think overall I did a dang good job and probably better than most BUT.....THE MORAL OF THE STORY is TAKE THE ADVICE from folks who are experts and Hire a Lawyer and let them handle it. It would be WORTH IT and during a couple of these obstacles I was WISHING I had! (& this coming from a TRUE ANAL do-it-yourselfer!)

I'm deserving of an "I told you so" but mainly I hope this helps someone in the future.


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