If you are getting ready to sell real estate with a trailer or camper on site…then this blog is for you.
This conversation will include anybody whose building is considered personal property. It could be a single wide trailer, a travel trailer, park model, or a camper. It could even be a Doublewide trailer, if the Doublewide has not been converted to real estate. Basically if you still have a DMV title for your building…then please pay attention.
There is been a growing problem in the real estate world with sellers trying to sell their property when they do not have a proper DMV title in their possession. Maybe it was never put in their name… Maybe it was lost or misplaced.
In many cases this does not come to light until the buyer and the seller go to the closing table. If the seller does not have a proper DMV title to convey to the buyer it will most likely hold the deal up. Most buyers are not willing to go to closing without the DMV title… And a bill of sale is not usually enough to make the buyer comfortable. In addition, most lawyers and title companies are no longer willing to let the transaction go to closing if the DMV title is not available and in proper order. And the very few that will allow the property to go to closing will often hold a significant amount of money in escrow until the seller can resolve the issues with the title.
So what can you do to make sure this problem does not affect your sale?
1) When you purchase a building that has a DMV title… You are required by Virginia law to place that title in your name within 30 days of ownership. If that is not incentive enough… Consider this, if you do not put the title in your name, and then you lose the title… DMV will have no way of issuing you a replacement title. Even if you inherited the personal property, were widowed, got married, or divorced. Make proper updates to the title.
2) Keep your title in a safe place. I personally recommend a fire box or a safety deposit box.
3) When you decide to sell your property, go find your title. Put your eyes and hands on it. Look it over and make sure everything looks right.
4) Once you list the property…consider sending your Realtor a copy for their file. That way they can show a buyer or settlement agent that you have it and can provide valuable information, such as the VIN number…which is required for the settlement and other documents. If you don’t take this step…consider at least sending a copy to your settlement agent as soon as you get a buyer. This will give them time to review the form in case corrections are needed.
5) Do not sign the title until settlement. Most settlement agents want to witness the signature. Plus, if the transaction is cancelled…you don’t want a signed title floating around.
It is in your best interest to follow these steps. Don’t wait until settlement and realize there is an issue. Plan ahead and ask your Realtor for help.
If you selling or buying on Chincoteague Island, Va; the community of Trails End or anywhere else in Accomack County…give me a call.
757-894-1479 or http://www.chincoteaguehomes.net