Posted by ReneeK_MI on 12/21/13 5:17am
Msg #496824

If you understand marked-up title, this is hysterical

I had a cash purchase closing yesterday, pretty small potatoes but a commercial deal - potentially a lucrative relationship for both the buyer's agent and buyer's attorney. Agent and atty both were quite young, obviously new, and trying SO HARD to 'save' the buyers from all kinds of imaginary monsters. That's fine, that's the way to do it I guess, if you're in their shoes.

As we begin, Buyer's Agent says "We never got a marked-up title {aside to Atty, he affirms Atty didn't get one either}, but my mom is an escrow agent so she marked it up for us." He pulls out his mom's handiwork.

You can't make this stuff up. The hardest part of my day was digging around in my Diplomacy Drawer, finding the right way to tell him that his mom can't mark-up title for us, without making him look like a 3rd grader.

The attorney also wanted to know why the other guy's mom couldn't mark it up. Back to the Diplomacy Drawer!

When docs were signed & I provided the authorized marked-up title - both the Atty and the broker compared it to Mom's, to make sure it lined up.

Reply by JanelWI on 12/21/13 6:00am
Msg #496826

Oh Renee....it just keeps getting better!

Aside from them comparing it to mom's how did they take it when you explained it to them? Did they even understand the gravity of it? If they were going to great lengths to protect the buyer it seems a bit counter-productive to be asking "mom" to do this...if mom is an escrow agent....oh my.....LOL!

Reply by ReneeK_MI on 12/21/13 8:29am
Msg #496838

Oh yes it does, Janel!

I didn't really 'explain' it to them - I don't think I could've done it with a straight face, and I didn't want to call them out in front of their clients (4 buyers).

I worded it so they could turn it around and blame anyone but themselves. I simply said "Oh, gosh, I'm so sorry but Blank Title Company wouldn't allow that, but I'll get you a marked-up at the end of the closing." They just sort of looked at each other and shrugged, like 'fine, if that's how you have to do it'.

Some day, and I hope soon, they'll figure this out and in my dreams, they'll remember how graciously I covered their butts.

Reply by MW/VA on 12/21/13 8:28am
Msg #496837

LOL--that's a funny story! ;-) What if they had got

someone who wasn't as knowledgeable as you? LOL

Reply by Darlin_AL on 12/21/13 8:34pm
Msg #496878

Renee--is that where they mark all the crapola on the

title commitment that will be paid at closing? e.g. existing mtgs, liens, etc? I worked in the industry 15 years & did everything from the abstract to the final policy--at the abstract level we find anything on the public record against the property & the seller. Put all that (crapola) on the commitment along with the usual exceptions for mineral mining rights, subdivision covenants, etc. At the final policy stage, the researcher has rechecked the public records to determine all the crapola required to be satisfied has been (at that time marking-up the commitment)and turning it in for final policy. the final policy person(s) check the marked-up commitment thoroughly to be sure all the required mtgs, liens are properly marked & referenced as satisfied. Whatever remains shows up as an "exception" to the final policy. this would be standard stuff such as mineral & mining rights, a 2nd mtg which has been subordinated, etc. Is that what is the big deal here? The onus is on the closing atty or escrow to make the "title" all pretty for the new owners and/or mtgee just showing the new mtg. So, why is the atty involved in your story so dumb? Not acting as closing attorney??

Reply by ReneeK_MI on 12/22/13 4:34am
Msg #496881

You are correct mostly, but missed all the key points

The attorney was the buyer's attorney - privately hired by buyer, representing only the buyer. The buyer's real estate agent is who had his mom mark-up title. The buyer's atty was somewhat lacking in the concept of how someone with a law degree would confirm that a valid marked-up title was properly and sufficiently marked-up, because rather than using his law degree & supposed expertise to do that - he used the 'word' of a real estate agent's mom. Additionally, he did not understand why someone (who doesn't work for the title agent) couldn't have their mom (also doesn't work for the title agent) provide the marked-up commitment.