Beyond the Bank

Beyond the Bank: Unlock Potential with Owner Financing

I. Introduction: Beyond the Bank – A Strategic Tool for Utah Real Estate Agents

Are you a Utah real estate agent encountering unique challenges when selling properties that don’t fit the mold of traditional financing? This often includes recreational parcels, vacant land, off-grid cabins, or even certain new home transactions, where conventional loans present hurdles.

Owner financing is a powerful, often underutilized strategy that can open new doors, broaden your client base, and help you bring more diverse properties to a successful close. This guide will equip you with the knowledge to discuss this creative option confidently with your clients, helping you unlock challenging listings and significantly expand your opportunities across Utah’s dynamic real estate market.

II. Owner Financing Defined: What It Is and Why Sellers Choose It

At its core, owner financing (also known as seller financing) is simple: the seller acts as the bank.

A level deeper, the process is a little more complicated, but still easy to manage. The buyer and seller agree on terms through the negotiation of the contract. The buyer makes a down payment through closing, signs a Promissory Note or Trust Deed Note (a promise to pay) and a Trust Deed (a legal lien, recorded against the property protecting the seller’s interest). The buyer then makes regular payments directly to the seller, or an agreed upon third party, over the course of the agreed upon term.

Why would a seller choose this? When a seller is in need of the full price up front, this type of transaction may not be feasible. But many savvy sellers recognize the significant advantages that also help agents facilitate smoother transactions:

Expanded Buyer Pool: Owner financing opens doors to more buyers who might not qualify for traditional bank financing, yet are financially stable with a solid down payment. This includes buyers for recreational property, building lots, small cabins, off-grid living, or even residential purchases.
Additional Income: Sellers earn interest on the financing (often higher than current mortgage rates), providing steady passive income.
Quicker Sale & Faster Closing: Bypassing lengthy bank underwriting, owner-financed deals close significantly faster. This means less market time for your listings and quicker commission payouts.
Tax Benefits: Receiving the sales price over time may offer potential tax deferral benefits for sellers by spreading out capital gains. (Always advise clients to consult a tax professional!).
Retained Control: The seller holds the Trust Deed, maintaining a secured interest in the property until the financing is satisfied, providing a strong incentive for buyer payments.

III. The “Why It Works”: Pushing Deals Through for Unique Utah Properties

Understanding why owner financing thrives in certain markets is key for agents. In Utah, traditional financing often struggles with specific property types.

Hurdles of Traditional Financing for Unique Properties:

Lender Hesitation: Banks often deem raw land, unique recreational properties, or those without established infrastructure too risky or difficult to appraise. Their guidelines aren’t always built for these diverse scenarios.
“Non-Essential” Classification: Recreational properties aren’t primary residences, making them less attractive to lenders prioritizing standard mortgage products.
Strict Underwriting: Rigorous buyer qualifications and lengthy approval processes often sideline capable buyers for non-traditional properties, causing delays or failed deals.
Lack of Comparables: Finding recent, similar sales for appraisals of unique properties in diverse areas is a constant challenge, complicating traditional financing.

Owner Financing – The Solution That Closes Deals:

Standard, conventional bank loans are great. They can be straight-forward, are federally regulated, and you generally know what to expect. But they don’t always work for non-traditional properties. Owner financing can be your strategic advantage as a real estate agent, directly bypassing traditional financing roadblocks:

Unmatched Speed: Without bank underwriting or complex loan committees, owner-financed deals close significantly faster. This means quicker transactions and commissions.
Tailored Flexibility: Seller and buyer negotiate terms that suit them. Down payments, interest rates, payment dates, payment amounts, and the loan term are all completely customizable. Balloon payments, often in 5-10 years, are common.
Broadened Buyer Reach: You can now market to a diverse group of buyers genuinely interested in unique properties who may not fit a bank’s mold.
Perfect Fit for Unique Listings: Owner financing transforms hard-to-finance listings—be it acreage, a rustic cabin without utilities, or a custom new home—into viable, attractive options. It provides an ownership pathway for properties that might otherwise languish.

Owner financing is more than just an alternative; it’s a powerful tool offering real estate agents a strategic advantage. By understanding its fundamental principles and significant benefits for both buyers and sellers, you can unlock new transaction opportunities, accelerate your closings, and ultimately, enhance your value to your clients.

July 18, 2025

Protect Your Listings, Protect Your Commission:

The Power of a Title Report

As a busy real estate agent, you’re juggling a million things to get your clients to closing. From staging homes to negotiating offers, your expertise is invaluable. But there’s one critical tool that often gets overlooked in the early stages, yet it can be the ultimate protector of your listings and, more importantly, your commission: the Title Report.

Order Early

We know the typical process: you get a listing under contract, and then the title company orders the title report. But what if you flipped that script? Imagine ordering a preliminary title report as soon as you take a listing. This proactive approach can save you a world of headaches down the line.

What’s Hiding in the Title?

A title report is a comprehensive document that reveals the legal history of a property. It’s like a deep dive into public records, uncovering crucial information that could impact the sale. Here’s what the Title Report can uncover:

Ownership Discrepancies: Is the person selling the house truly the legal owner? Are there other heirs or parties who also need to sign off on the sale? All owner are listed so you can verify all owners will be signing.
Outstanding Liens and Judgments: Unpaid taxes, contractor liens, child support judgments, or even old mortgages can all attach to the property. These need to be cleared before a sale can close.
Easements and Encumbrances: Does a utility company have the right to access a portion of the property? Are there shared driveways or restrictive covenants that could affect a buyer’s plans?
Permit Issues: While not strictly title-related, sometimes a Title Report can indirectly flag properties with unpermitted additions if the square footage or property description doesn’t match county records. This can lead to delays and complications.
Access Issues: Insurable access to a property isn’t necessarily a deal-breaker, but it’s a significant consideration, especially for vacant land where this issue is more common.

How an Early Title Report Protects You:

Ordering a title report early in the listing process empowers you in several ways:

Identify Issues Before They Become Deal Breakers: Discovering a major lien or an ownership dispute just days before closing can derail a transaction. An early report gives you time to address and resolve these issues calmly, without the pressure of a looming closing date.
Set Realistic Expectations with Sellers: If there are known title issues, you and your sellers can work together to resolve them before a buyer is even in the picture. This might involve clearing old debts, obtaining missing signatures, or considering a price adjustment if an encumbrance impacts value.
Build Buyer Confidence: When you can assure potential buyers that the title is clear, or that any identified issues are being proactively addressed, you instill confidence in the transaction. This can lead to smoother negotiations and a quicker path to closing.
Protect Your Commission: Every deal that falls apart due to an unforeseen title issue is a commission lost. By identifying and resolving these problems early, you significantly increase the likelihood of a successful closing and, therefore, a protected commission.

Your Trusted Partner

At Express Title, we believe in proactive problem-solving. We’re here to be your partner in every transaction, offering comprehensive title services that go beyond just closing the deal. We would love to help you protect your listings and your hard-earned commission.

Think of an early Title Report as your secret weapon in a competitive market. It’s a small investment of time that can yield huge returns in peace of mind and successful closings.

February 27, 2016

Buying Real Estate at Tax Sale

How To Buy Real Estate At Tax Sale

Buying tax delinquent property at tax sale is a profitable land buying method. However, buyers sometimes pay too much for the property or buy real estate that has serious title problems. Often the purchased property is not as expected, it may be inaccessible, a steep hillside, desert or undesirable in some other way. Follow the steps below to avoid these problems.

Tax Sales Process

Property is sold by the county for delinquent taxes. It often takes five years of delinquencies before the property is sold. Some states sell tax certificates. In this case you are buying the tax debt from the county not the property. We will focus on states that conduct auctions.

After meeting the requirement (number of years of delinquent taxes) the auction is held. Like any auction, the property is sold to the highest bidder. It is usually held annually at the local courthouse.

Property owners can redeem the property anytime before the actual auction. This means that the preparation and research I will describe below may be wasted if the property is redeemed before the sale.

Buy Before Property Tax Sale

Before going through the steps I want to share a great strategy to buy tax delinquent land. Contact the owner before the sale and offer to buy for a small amount. Then pay the taxes and you will own the property before the sale. Many owners will jump at the chance as they know they are about to lose the property.

This may not always be to the advantage of the seller as they are entitled to any proceeds from the auction above what is owed in delinquent taxes.

Check For Clear Title

Always have the title of the property checked before making a bid. This takes preparation and you will need to contact a title company before the auction. My title company is often contacted the day before the sale to check the title. That is not enough time to do a title search.

Many people buy property at the auction, discovering later there are title problems. The land may have loans, liens or other title problems. Don’t buy without knowing the title condition.

Visit Tax Deed Sale Property

Visit the property before the tax sale. Know what you are buying. There may be a reason the property is going to tax sale other than the owner can’t afford the taxes. The owner may know that the property has no legal access, is a steep mountain, or a sand dune.

Determine Property Value

Know the approximate land value of any property you want. It is easy to pay more than the property is worth at an auction.

Check Real Estate Listings

I have seen property sell at a tax deed auction for 2 or 3 times what adjoining property is listed for by a realtor. The listed property is not only cheaper but you also receive clear title, and have a realtor to do much of the work and show you the property.

Why buy real estate with title problems if you can buy property through a realtor cheaper and without title problems?

Avoid Auction Fever

Most importantly avoid auction fever. Auctions are exciting and it becomes a competition to win. Many bidders do it for fun with no idea what they are buying. Focus on a couple of properties and don’t pay more than they are worth.

Tax auctions have become so popular that owners are now buying property and intentionally not paying the taxes. When the real estate is sold at auction they receive any money above the delinquent taxes. If the property sells for a good price they clear a nice profit.

A Tax Deed Sale can be a great opportunity to get property at a great price but only if you prepare by doing your research before the auction.

February 27, 2016

Buying Real Estate at Foreclosure Auctions

Buying Real Estate At Foreclosure Auctions

To be successful buying land at foreclosure auctions, or more correctly Trustees Sales, you need to understand the foreclosure process. The process is long and complicated causing many to avoid them. Because of this, it is a great opportunity.

Understanding Foreclosure Process

You must understand the foreclosure process to be successful at trustees sales or foreclosure auctions. Understanding the process will help you decide the property in foreclosure, when the auction will be held and what a reasonable price is.

Finding Foreclosure Property

To buy at Trustee’s Sales you must find properties before the Trustee’s Sale. Trustee’s Sales are advertised in the paper before the sale, using a Notice of Trustees Sale. If you see the Notice the first week published you will have several weeks to research the property.

If you want more time to research you can review the Notices of Default recorded in the county recorders office. These are filed at least 3 months before a possible sale. The downside of using the Notices of Default is many of these properties will be paid and not go to Trustees Sale.

Know Property Value

You should know the approximate property value. The amount owed on foreclosure property is often higher than the properties value. If the amount owed is more than the property value – STOP! Don’t spend anymore time on this property.

Know Amount Owed

Before attending you should know the amount owed on the land. The first bid is made in behalf of the lender and will usually be for the total amount owed. If the amount owed is more than the property value there is no need to attend the sale. You don’t want to pay a premium for foreclosure property.

In a market of declining property values many of the properties at foreclosure auctions will be worth less than the amount owed. Be careful and don’t pay more that the property is worth. You may have to search many foreclosure notices to find an auction worth attending.

To find the amount owed you can call the individual or company handling the Trustees Sale. Their contact information will be in the Notice of Trustees sale published in the paper. If they refuse to give you the amount you can get a copy of the Trust Deed from the courthouse. You can estimate the amount by looking at the age and amount on the Trust Deed.

Research The Property

After you have found promising foreclosure candidates you should have a title search performed on the property. Unlike a standard purchase there is no title insurance on trustees sales so it is possible to buy land with title problems, or unpaid liens and mortgages.

Attending The Auction

If you find a property, at a good price, with no title problems nor outstanding liens, attend the auction ready to comply with the instructions in the Notice of Trustee’s Sale. This often includes certified funds at the time of auction for part or all of the bid price. Usually you must have a set amount at the auction and the rest within 24 hours.

The auction is handled like any other auction. Bids are taken and the high bid will win the property, subject to meeting the conditions in the Notice of Trustees Sale.

Buying property at foreclosure auctions is more difficult than many other methods. Because of this most people avoid them. This makes it possible to find excellent deals. It just takes work and preparation.

February 27, 2016

The Deed Search in a Real Estate Transaction

Do I Need A Deed Search?

A Deed search is a review of all recorded deeds on a specific parcel of land to determine the history, ownership and liens of that land. This search is conducted at the local county recorders office. When the search is completed you receive either a chain of title or a abstract of title.

A chain of title is a list of each recorded document that pertains to the property. An abstract is a copy of every document in the order they were recorded.

What Is A Deed?

Deeds are used to transfer or encumber real property. The most common are Warranty Deeds, Quit Claim Deeds and Trust Deeds. The Warranty Deed and Quit Claim Deed transfer ownership of real property, while the Trust Deed adds a loan to real property. There are many other deeds but most either transfer land or add a loan.

When Do You Need A Search

There are many instances when you may want a search. If you are buying property at a tax sale or without title insurance you need one. If you plan on subdividing or developing land it may be helpful also.

The search is conducted by the title company before they issue title insurance so when you buy land you receive a title policy instead.

Who Does Deed Searches

Searches are conducted by title companies or independent title searchers. I recommend you use a title company. Title company personnel are required to be licensed by the state and are trained by the title underwriter.

Mineral Search

The mineral search is a special type of search. It is only used in areas that have mineral exploration such as oil or natural gas. In these areas the mineral rights are often owned separately from the land.

When you own land but not the mineral rights it is helpful to know who owns them. Unlike surface rights the mineral right ownership may be divided in percentages and owned by dozens or hundreds of people. Because of this a mineral search can be expensive.

Summary

A search is helpful when you need to know the current condition of the land title and the history of ownership. The search can be conducted by a title company or independent title searcher.

If you are buying property insist on a title policy. The title company will conduct a search to issue the policy. You can request a copy of the chain of title at closing so you will have a history of ownership in addition to the title policy.

February 27, 2016

The Special Power of Attorney in Real Estate

The Special Power Of Attorney

The Special Power Of Attorney is only one of many types of powers of attorney. The most common is a health care power of attorney, which grants another the authority to make health care decisions when you cannot. Others include the General Power of Attorney and the Special Power of Attorney. We will focus on the special type.

Unlike a general power of attorney which empowers someone to act on your behalf in almost all legal matters, a special grants someone the right to act in one specific matter and usually for a specified period of time. A Power of Attorney is often referred to as a POA.

Use In Real Estate Transactions

This type is often used for land transactions. With this document you grant someone the power to act in your behalf on all matters dealing with a specific piece of land. This would included buying, selling, mortgaging, leasing etc.

When a person is unable to attend their closing they may grant a special powers of attorney to their spouse or other trusted person. Banks and title companies often require this type of POA and require it to describe the specific property.

Durable Clause

A durable clause can be added to any type of power of attorney. It means the power of attorney is still in effect if the grantor (person giving power of attorney to another) becomes incapacitated or mentally incompetent. This incapacity includes Dementia, Alzheimer’s or a coma.

You should be cautious and grant this only to someone you completely trust. You can revoke a power of attorney at any time, unless you are mentally incompetent. The power of attorney then stays in effect while you are judged incompetent, which could be until death.

Void Upon Death Of Grantor

Upon the death of the grantor all powers of attorney are automatically and immediately void. Many times I have seen individuals try to use a power of attorney granted by a person who is now deceased. They did not understand that it is now void.

Cautions

Be careful in choosing who you grant power of attorney. You must trust this person completely and know they will act in your best interest and according to your instructions. You are giving them a great deal of power to make decisions and act on your behalf. Most of these decisions cannot be changed.

Revocation

To revoke a power of attorney you send a signed statement to the holder stating it is revoked. You also request the original document be returned to you. You should also notify anyone who has a copy, or has conducted any business based on the power of attorney, of the revocation.

When creating a POA it usually states it revokes all previous ones. The special may not have this wording as it is for a specific purpose.

Limits

The use of powers of attorney in real estate transactions is limited. Many banks and title companies will not allow their use. Often title companies will require a power of attorney they prepare. They are hesitant to use a general power of attorney or any power of attorney that is old.

Because the POA is the most forged document they will want to know why you are using it, may want to prepare it themselves, and will want to talk to and maybe meet the individual granting the power of attorney.

They will also insist on a Special Power of Attorney that specifically describes the land for which it is granted.

The Special Power of Attorney grants broad powers and should not be used if it can be avoided.

February 26, 2016

The Quit Claim Deed and How to Use It

How To Use A Quit Claim Deed

The Quit Claim deed is the most common deed. It is literally a deed to quit any claim you have on real property. The deed does not guarantee you have interest in the property only that you are abandoning any interest you may have to the persons receiving the deed. It is mistakenly called a Quick Claim deed or quitclaim deed.

Purpose of the Quit Claim Deed

A quitclaim deed does transfer any ownership held by the seller to the buyer, but does this without guarantees. If a seller issues this deed on property they don’t own, they are not liable in any way. They are not guaranteeing they own anything, they are just transferring any interest they may own to the buyer.

When Are They Used

This type of deed was not meant to be used in standard real estate transactions. It was designed to be used for very specific purposes. These include:

Transferring property between family members.
Adding additional owners to your property.
Transferring your land to a Family Trust or Company.
Donating property.
Clearing up title problems.
Changing the vesting of your property.
Correcting errors in previous deeds.

The above uses do not include the transfer of money. When property is sold a Warranty Deed should be used.

How They Affect Real Estate Buyers

A buyer should never accept this deed in a real property transaction. It provides no guarantees that you now own the property. If the seller owned the property or a portion of the property it does transfer their ownership however, if you later find title problems you have no recourse against the seller.

How They Affect Real Estate Sellers

Using this deed is helpful to sellers. When transferring property they are not making any guarantees to the buyer. If there are title problems a seller may want to use a quit claim deed to transfer real estate. This should be a red flag to any buyer of possible title problems.

This type of deed is not appropriate for real estate transactions. It should only be used for purposes listed above or similar that do involve the transfer of money.

The Warranty Deed. The Warranty Deed is the most secure deed and should be used in all real estate transactions. This deed guarantees title to the buyer.

The Special Warranty Deed. The Special Warranty Deed is a compromise deed. It guarantees title only for the time the seller owned the real estate.

February 26, 2016

The Special Warranty Deed

The Special Warranty Deed

The Special Warranty Deed is a compromise deed. It guarantees clear title only during the time the real property was owned by the seller. It does not guarantee against any issues that may be present before the seller owned the property.

It is between a Quit Claim Deed and a Warranty Deed in guarantees. The Quit Claim Deed has no guarantees, while the Warranty Deed Guarantees the property is free and clear from the original owner until the time of sell.

General Purpose and Effects of the Special Warranty Deed

This deed transfers all of the owners interest to the buyer and guarantees against title problems from the time the owner purchased the property until the time of sell. It does not guarantee against problems that may have existed when the owner purchased the property.

When Are They Used

Government agencies and large companies often have a policy to issue this deed. Other sellers will also want to use one if they know of previous title problems. Attorney’s often advise their clients to use this deed.

How They Affect Real Estate Buyers

This deed transfer the sellers interest to the buyer and is usually a good transfer. However, if there are title problems before the seller owned the property the seller is not guaranteeing against these problems. The seller may not be aware of these problems.

How They Affect Real Estate Sellers

When using this deed the seller is accepting less legal liability that when using a Warranty Deed. This is definitely to the sellers advantage.

While there may not be previous title problems, the seller will not liable for any that do exist. If a seller insists on using this deed consider this a red flag of possible title problems. Also title companies may not insure the transaction unless a Warranty Deed is used.

February 26, 2016

The Warranty Deed

The Warranty Deed is the most secure deed and should be used in all real estate transactions. When signed the seller is guaranteeing there are no title problems on the land being sold.

General Purposes And Effects of the Warranty Deed

This warrants or guarantees the property from the original owner to the time of sale. The buyer receives this guarantee from the seller. Most real estate transactions are insured by title insurance so that becomes the main protection to the buyer. In this case the title insurance company has the right to go against the seller in the event of title problems.

When is this Deed Used

This deed is the standard in real estate transactions. If the seller wants to use a different Deed consider this a red flag of possible title problems. If you are buying, insist on a this Deed or do not complete the transaction. An exception to this might be government agencies and large corporations which have a policy of using Special Warranty Deeds.

How They Affect Real Estate Buyers

This deed gives the buyer the greatest amount of protection. The seller guarantees the property is free and clear of any title problems or liens, except those listed on the deed.

How They Affect Real Estate Sellers

When a seller signs this deed they are guaranteeing there are no title problems, loans or liens on the property, except those spelled out in the deed. This includes title problems the seller is not aware of. If a title company insures the property they have the right to come against the seller to resolve title problems that existed before the time of sell.

February 26, 2016

Lis Pendens and Real Estate

The Lis Pendens And Real Estate

Lis Pendens is latin for “suit pending”. If a Notice Of Lis Pendens is recorded at the local county recorder on property it means there is a law suit pending on that property.

The notice secures any interest the plaintiff in the lawsuit may be awarded in the property. Once recorded it will be difficult to sell a property without first clearing the notice. Title companies will not close transactions with a notice recorded on the property. The notice does not legally stop the sell of property but anyone purchasing would be subject to the lawsuit referred to.

Anyone can record a Notice and many are not legitimate. To remove a notice on your property you need to file an action in court to have it removed. The judge will determine if the notice is legitimate and either remove or uphold it.

How a Lis Pendens Affects Sellers

This notice notifies land owners there is, or soon will be, a lawsuit which involves them, their land or both. The lawsuit could be anything from a public condemnation of property to a action to collect child support.
This type of notice is relatively rare but does happen. When it does it makes it nearly impossible to sell land until the lawsuit it represents is resolved. Some Notices are are not legitimate and can be removed by a court action.

How a Lis Pendens Affects Buyers

If a notice is recorded on property you are considering purchasing, DON’T!. You can wait and see if the seller is able to clear up the lawsuit but do not purchase until the notice is officially removed from the property, as determined by the title company.

Who Can File this type of Lien

Anyone can file this notice for any reason. Sometimes it is recorded to stop a property from being sold or as a vendetta against the seller. If there is no legitimate lawsuit behind the notice it can be removed by a court and the seller can ask for damages.

Reasons For Filing it on Utah Real Estate

Creditors often record them as they prepare a law suit to collect overdue debts from the real property owners. Government agencies or public utilities that plan on condemning (taking) the property for public purposes may also record a notice. They are recorded in a wrongful death suit against the real property owners.

Any attempt to collect money from the land owners or to condemn the property can result in this notice being recorded.

Affect On Selling Land

The notice will stop the sell of real estate. It is legal to sell real estate with this notice recorded against it, however a title company will not insure and most buyers will not buy real estate in this condition.

Summary

A Notice of Lis Pendens is a notice that someone is filing a lawsuit that will affect the property upon which it is recorded. The notice needs to be released before the property can be sold. Never buy land until it is released.