I'm looking at buying a property that's held by a trustee. It will come with a trustee deed vs a general warranty deed.
AFAIK, there are no liens against the property other than current tax year and a mortgage, both of which would be taken care of at closing.
I would be buying the property for circa $100k, adding circa $150k in repairs, and then selling for circa $250k to $375k.
Three questions:
1) As I understand it, title insurance would only cover me for the price of the land purchase, or $100k. Is that correct?
So if title were compromised, I could be out the $150k for improvements. Any chance on putting a workman's lien on the property to force a sale to collect?
2) Will not having a general warranty deed in my hand cause issues with someone getting a mortgage loan to buy it from me?
3) Can I offer a general warranty deed?
If so, and somehow the title is found to be messed up, what have I just put at risk? And for how long?