Who is a principal?
Continuing with our PETIO formula, I want to spend some time on title.
Its a little word, however it has big implications.
Most people think of title merely as being the owner of something, as in the owner of real estate.
When you look at real estate ownership, there’s an owner of record as can be found in the county recorder’s office.
This puts the world on notice that John Smith owns the property.
However, that’s usually not the way title is held.
Vesting is how real estate is owned.
If John bought the property many years ago, as a single man, vesting might look like this:
“John Smith, a Single Man.”
If John subsequently married, had children, and then died without ever changing his property title vesting, simple research would not disclose these facts.
So, who would (or could) a principal be?
Generally, a principal is someone who has an interest in something that can be transferred, It could be any of the living children who were old enough (18+) and competent to sell their interest(s). Not an agent, not a broker and not an intermediary.
However, they do not have record title, and that’s what standing in the way of you buying that house (or at least one of the issues).
As you’re no doubt aware, I’m passionate (obsessed?) with missing and deceased owner “orphan” properties.
I’m very careful not to label every vacant as abandoned.
To me, this implies that no one has any active interest or concern for the property.
Tell-tail signs include delinquent taxes and lack of any recent deeds or transfers.
When you discover an orphan house, there are plenty of obstacles to overcome, and that’s what we’ll be discussing in our first Hunting Club meeting, June 20th. Not a member? Better sign up now. You’ll get a free 30 day access if you go to the sign up tab. Only members will have access to this call.
