A potential client is in urgent need of a ?ñ134-acre boundary survey of the family estate. Closing was to be this week, however, the Title Insurance company just now says they will not accept the 75-year-old deed description (shown below) with only a "bounded-by" description. This very rugged terrain, with several exceptions from the deed, plus winter conditions. We have 18" of snow in my area with the potential for another big snow event at the end of the week. So needless to say this is going to cost $$, and unfortunately the tab is on the seller to pay, and they have no money until closing. I normally get 50% upfront.
The seller's attorney can escrow payment and fulfill it upon closing, but how do ensure payment if there is no closing?
Around this area, the resulting surveying could be 100-acres or 160-acres. Hate it when these lawyers try to buck the system and try to convey without a survey, but they get away with it most of the time.
The presumption here is that all named have been deceased for at least one hundred years.
The presumption here is that all named have been deceased for at least one hundred years.
Yes, that would be the correct assumption. Even the road names have all changed, in this case, there are three names for the same highway.
As busy as everyone should be, this one sounds like a job for the next guy.?ÿ The risk is all on you if they don't close, why take that risk unless you can afford to?
Twice in the past I have agreed to do a survey with payment at closing. I added a note in the contract stating that payment is due within a certain period of time whether or not there is a closing. I got paid promptly at closing within 45 days of both surveys. These were small lot surveys. I'm not sure if I'd do it on a big job like that, especially with all of the work I have lined up now.
Gregg?ÿ
Put a lien on the property immediately upon completion of the survey. ?ÿI??d plan on doing it after spring thaw. ?ÿI never liked doing large parcels in the winter unless I could do my recon with only a small amount of snow on the ground. ?ÿTo easy to miss something.
Very interesting situation.?ÿ And I certainly do not blame the the title company.?ÿ So why should you be the one taking the risk??ÿ For what it is worth I think you should consider just what you already do.?ÿ Get fifty percent of what you expect the cost to be before starting the survey.?ÿ If the seller cannot work that out then walk away.?ÿ?ÿ
I know that closings in New York are probably different than what I am use to but I would think that an extension maybe needed.
I used to do a lot of small acreage or lot surveys and get paid at closing.?ÿ I stopped doing that a long time ago.?ÿ It may sound harsh but old age and experience has taught not the depend on the actions of a third party.?ÿ?ÿ
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Good luck!
"The seller's attorney can escrow payment and fulfill it upon closing, but how do ensure payment if there is no closing?"
If you have agreed (see the fine print associated with the escrow acount) for fees to be distributed at closing, you ain't gonna collect zilch if the colsing does not take place. ????ÿ
The seller's attorney can escrow payment and fulfill it upon closing, but how do ensure payment if there is no closing?
Put a hold on the sellers credit card for the full amount before starting or have a lien attached to the property for the full amount prior to commencing work. At some point you might collect.
Or the seller has to take out a short term loan to cover you. If not walk
Can you put a lien on property prior to any work?
Use contract wording like "due whether or not parcel is sold, due at closing or within 90 days whichever is first."?ÿ Then if closing doesn't happen file the lien.
the tab is on the seller to pay,
Interesting...all of the ALTA/NSPS surveys I do are paid for by the buyer.?ÿ
It is their title company that wants it, right? The buyer should put the money in escrow for the estimated amount of the survey right now.?ÿ
It sounds like a bad deal for the seller. They get a $20k survey done by you, and then are stuck if they cannot sell. Puts too much leverage in the hands of the buyer to make the sale something the seller HAS to have.
I agree on the lien. Get that in there ASAP.
The seller's attorney can escrow payment and fulfill it upon closing, but how do ensure payment if there is no closing?
Get a very large retainer up front...
Put a hold on the sellers credit card for the full amount before starting
How does one do that?
How about a credit card??ÿ Here is what I've done in the past--bill normally, with payment due within 90 days (to capture minor delays in the closing process, they can pay from closing if they want to), with the understanding in writing that I will bill the credit card after 90 days.
If they don't have CC capacity AND they have no cash, well...
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Sounds like a huge gamble with all the odds stacked against you. I only gamble when the odds are stacked in my favor. Now if the buyer was willing to enter into an earnest money contract to put up enough money to cover the survey which they would recover on completion of the deal, that might put the odds more in your favor but, I wouldn't touch it if the buyer has no skin in the game.?ÿ
Just because I'm paranoid, doesn't mean they aren't out to get me.
the resulting surveying could be 100-acres or 160-acres. the resulting surveying could be 100-acres or 160-acres.
Thats one reason the closing might not happen. If it??s too small the buyer won??t want it. If it??s to big the seller will want more $$.?ÿ
Have them convey the property to you with your agreement to convey the property to xxxxxxxx upon the payment of the survey fees. They want you to trust them. Why not make them trust you.