Expert Advice

With decades of experience in the real estate industry, I have seen firsthand the importance of clear ownership documentation and strategic investment planning. One of the most common mistakes buyers make is overlooking title security and failing to conduct proper due diligence before purchasing land.

Real estate should always be treated as a long-term asset, and that means ensuring full legal protection from day one. Working with a reputable title company, obtaining title insurance, and verifying zoning regulations are essential steps that safeguard your investment. At Eli Property, we emphasize transparency and legal clarity in every transaction, ensuring that our clients secure land with confidence and long-term value.

As an estate lawyer, I frequently handle estate planning and asset inventories. One of the most common issues I see is the lack of a recorded deed when purchasing property. Without proper documentation, there is no clear evidence that a sale has occurred, leaving the buyer legally vulnerable.

Real estate transactions fall under the statute of frauds, which means they must be in writing to be enforceable. If a deed is not recorded, the seller can legally resell the property to another party, leaving the original buyer with no recourse. Handshake agreements, often made between friends, become especially problematic when the seller passes away, leaving heirs unaware or unwilling to honor the deal.

Additionally, failing to work with a title company exposes buyers to unknown risks, such as existing liens or unpaid taxes. Title insurance ensures that the seller has the legal right to transfer ownership and that the buyer receives a clear title free of hidden encumbrances. The only safe way to purchase real estate is through a recorded deed, insured by a reputable title company.

Buying property without a recorded deed and title insurance creates countless legal and financial risks. When the seller retains title, creditors can place claims against the property, potentially leaving the buyer with no legal ownership even after full payment.

Unrecorded transactions do not establish public notice of ownership, allowing a seller to resell the same property to another buyer. The cleanest and most secure method to purchase real estate is through a recorded deed and promissory note secured by a deed of trust. These legal documents protect both parties, ensuring clear ownership rights and preventing disputes.

With 29 years in the title industry, I have seen firsthand the risks of improperly handled real estate transactions. Every day, our office receives fraud alerts and scam warnings from title insurance underwriters, emphasizing the importance of a secure and documented closing process.
Before purchasing any property, buyers should always:
- Review a preliminary title report to verify ownership.
- Deposit payments into escrow, rather than paying the seller directly.
- Obtain title insurance to guarantee a legally protected transaction.
Without these safeguards, buyers face significant financial risks, including disputes over ownership, unpaid property taxes, and potential foreclosure. A recorded deed is the only way to prove ownership and ensure long-term security.

As an investment advisor for over 20 years, I strongly advise against purchasing any real estate without a recorded deed and title insurance. I have seen numerous cases where clients faced major legal challenges due to title disputes. Properties with unclear ownership often require expensive and time-consuming litigation before they can be sold or transferred to heirs. Proper title documentation eliminates these risks, ensuring that real estate investments remain secure, transferable, and legally protected.

With nearly two decades of experience managing escrow accounts, I have worked with hundreds of real estate transactions. A collection escrow account is an essential service for both buyers and sellers, providing structured payment processing and legal documentation. Escrow services ensure:
- Accurate processing of all payments according to contract terms.
- Annual statements with a detailed record of transactions.
- IRS reporting to simplify tax obligations.
- A secure paper trail of all account activities.
Without an escrow account, buyers risk payment disputes, lost records, IRS filing errors, and unrecorded ownership history. To ensure a legally sound real estate transaction, collection escrow services should always be part of the purchase process.