I have a park under contract and my due diligence period is nearly up. Yesterday, I had a meeting with the title attorney and she has raised some questions regarding the seller financing agreement I am looking to assume. To summarize, I am buying this park from a seller who has “owned” the park for 6 years. I am assuming the seller financing agreement he has with the previous owner. As a result, the agreement I am assuming has a “no recordation” clause. Furthermore, I will receive a Warranty Deed and the Sales Agreement will be held in escrow.
The title attorney is alarmed as I will not be able to receive title insurance and there will be nothing public on the title saying I am the owner of the park.
Is the agreement and arrangement I am getting ready to assume, typical for seller financing? As this is the first time I have completed a seller financing deal, I want to ensure I am handling this appropriately and not opening up a can of worms in the future. While the sales agreement is binding, should the owners pass away, not having title insurance is a new one for me.