Real Estate

What is a Mortgage Inspection Cert (MIC) and why does the seller pay for it?

A mortgage inspection cert is a drawing of the property that is being conveyed between two parties. It is often called a survey. It is not a pin survey and should not be used when determining actual lines to say install a fence. It is a useful to know easements and encroachments. It will also show whether a building is actually on the property it is supposed to be as per the legal description.
The seller pays for the MIC to prove that they have a marketable title. Sometimes I get sellers who rebuke the idea of needing a survey. Yet it is important. They are disclosing to the buyer that the title of the property through the survey is clear of encumberment and encroachments.
I have seen gas line easements which have run down the middle of a property, pools in easements, driveways that are over property lines and other easement issues. The most common easement violation are sheds in the utility easement. Just because there is an easement violation doesn’t mean you should stop the sale. You should investigate more to know what you are purchasing and to understand how it will affect the usefulness of your property.
The worst MIC I saw was one where the house didn’t actually sit on the property being sold. The seller and the previous seller had done a quick claim deed about 20 years ago and then did a corrected deed and then another corrected deed all to get the property correct. Unfortunately, they still did not convey title correctly. When the seller refinanced the property 12 years ago, the lender didn’t do a survey since the borrower owned the property. Had the borrower ever defaulted on the loan, the lender would have had a driveway as collateral. We had to go back and correct the deed in order to sell the property. It took about 5 weeks to accomplish, but my team did it. The other option would have been to quiet title the issue. The seller had been living in the house for 20 years paying taxes and would have won the quiet tile suit; it just would have cost attorney fees.
If you are purchasing property, always get a survey so you know what you are buying. You will want to know exactly what you are purchasing.
If you have real estate questions or are looking to buy, sell or invest in real estate please feel free to contact me at 405-213-2992. Feel free to visit my website

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