Purchasing a dispute mobile home

[bunga]

I'm in the middle of escrow in the purchase of a Mobile home. Yesterday, we received a letter from our escrow company that someone claims interest in the home, and is asking that the sales proceeds due the registered owner (seller) be held upon close of escrow. What it is, is this; The seller obtained the home from the previous owner, who is an elderly man, and was taking care of him. The elderly man signed the title to the gentleman who is now selling it to us. He has since had a stroke and is hospitalized. The family is now contending that the elderly man is not mentally sound and has claimed interest in the home. So my understanding is that upon completion of the sale, the proceeds will be held due to the registered owner by the escrow company until the resolution on who gets the proceeds form the sale, and that it will be of no circumstance to us, the buyers. My question is, could the title and ownership be brought into question later on after we've purchased it and are living there somewhere down the line, or are we free from risk upon purchase?

[rmurray]

Sounds like the family will have a very valid claim...Since an escrow company is involved, I assume there is no real estate attorney involved to ask and I assume there is real estate involved...If so the escrow company will be writing at least a lender title insurance policy which insures to the lender that the title to the real estate is good...You can buy for a small fee owners title insurance, which will protect your interest as well..You should have owners title insurance...That should put your mind to rest...

[bunga]

Thanks for your response. I can't obtain the title insurance because I am paying cash (no lender involved), and mobile home is considered personal property, not real estate. I'm trying to find out when the title was transferred; before or after the previous owner has become mentally imcompetence. If the title was tranferred after he has become ill; the title could be revoked from the current registered owner. I would like to hear from anyone if this would be the case. Thank you.

[rmurray]

Sounds like you are risking all your money....This question calls for formal legal advice...You should invest a few hundred now for good local legal advice...Laws and case law would be different from state to state..Your escrow company should be able to refer you to one....Be sure you get advice before you close..