There should be a title search, and title insurance should be in place. Diana Sloan, an escrow officer with American Title Company, a national title company, in Bakersfield, claims that title companies and real estate lawyers can tell you what you are required to have done in whatever state you live in. She suggests that you also have to work out who pays for what. For example, as a rule, the buyer pays for the termite inspection and the seller pays to clear it, but both parties must agree to that up front. An individual can also ask that the buyer include money in the monthly mortgage payment to go into an escrow account for taxes and insurance on the house.
Liens stay with the property and transfer to the person who takes it over.
These liens can be removed, but it's a lot easier to have it done before the property changes hands than after the fact. So if you aren't willing to get involved in the negotiating process, perhaps you shouldn't offer to carry a second mortgage or a first mortgage. If you do carry a mortgage, do all the necessary homework. This booklet contains helpful information regarding offering financing to the buyer of your home, selling your home to a relative and contains listings of note brokers and attorney referral services. Inc. All rights reserved.