Thread: Bought an REO property, escrow doc scaring me

Hi all,


My offer was accepted and escrow sent us a doc- Reo sale closing instructions.

We are having a hard time understanding the language. We showed the doc to our loan officer and real estate agent and they have never seen anything like it before.

Here is what we are having trouble with:

"Buyer approves the contemplated policy form and acknowledges that the policy of title insurance shall be subjet to all exceptions on the preliminary report excep":

1- delinquent general and special taxes, assessments and/or bonds
2- Voluntary and/or involuntary liens created by seller or prior owner not assumed to buyer
3- Deed(s) of trust not assumed by buyer
4- The following items which are specifically disapproved by byer:__________
buyer initials
(buyer: please list above the number of the specifi exceptions on the preliminary report which are disapproved and initial.)



"Buyer futher acknowledges that (escrow company) has not examinted the public records for any involuntary liens that may be of record against the undersigned buyer(s)"

Buyer understands that, should there be any involuntary liens recorded against the buyer at the time buyer acquires title, these involuntary liens will become liens on the title to the property"

Important information about property taxes: The undersigned buyer and seller acknowledge:
1- property taxes may include delinquent bills of prior owners
2- escrow holder will prorate taxes based on the most reent information readily available to escrow holder at close of escrow
3- The tax assessor may refund taxes based on reassessment of the property at a lower value
4- Other cirumstances related to prior ownership of the property and changes relating to market conditions and tax assessments may affet the property tax amounts that esrow holder is unaware of

Escrow holder will chek information available to escrow holder to make the proper payments and prorations, and the buyer and seller are encouraged to make their own inquiry directly to the tax assessor for comprehensive information. escrow holder will not be responsible to make adjustments or payments relatiing to taxes if inforamtion was not readily available at close of escrow. ____initials

I don't know if we should be worried about this. seems to me that both the bank and the escrow company wants to dump all liability on us.


* This is not a purchase agreement. The doc is done by a lawyer.