I purchased a parcel of land from my aunt & uncle and didn't do a title search after she assured me that it wasn't necessary. (I know.... Stupid me!!) The purchase agreement and the contract signed at the closing both said that she was selling this property free of any encumberances, unpaid taxes, etc.... Now I find that there are several liens on the property. So I guess my own aunt lied to me. What courses of action do I have now?
2006-08-31 05:35:27 · 11 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You are going to have to sue her, assuming the liens are valid and not simply items that have been paid without the proper discharges ever having been filed.
2006-08-31 06:01:38 · answer #1 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
Did you request a title report to find out if the liens have been paid off or are even legal? Your aunt might not have lied to you,she might be a victim of people not recording a deed of satisfaction or what ever you call them in your state.
What type of closing did you go to when your aunt signed over the deed to you? If it was at an escrow office, perhaps you did get the benefit of a title companies protection.
Go to the county recorders office in your local county, secure a copy of each lien. Call the lien holder, identify yourself to them as you are working for your aunt and want a demand or a deed of satisfaction. You may also request a title report from a title company. They might do this a courtesy, if not get one of your real estate friends to do it for you.
If the liens have not been paid you may offer to pay them off at a discount as you were not the original owner when they were placed on the property.
If you want to build on the property and the liens are good you will have to get a subordination agreement from each of them and pay them off during the loan process as long as it fits within the lenders LTV.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2006-08-31 13:20:35 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
Wow! 3 things can happen:
1/ The proceeds from the sale should go to paying off the liens..this would be a problem for the seller.
2/ The liens are attached to the property so in the event you go to sell, you would have to pay them off...you can always try and sue your aunt if she refuses to pay from the proceeds but really, you should have done the due diligence.
3/ Title insurance...do you have any and see what recourse you have for conveyance of imperfect title?..
2006-08-31 13:15:45 · answer #3 · answered by boston857 5 · 0⤊ 0⤋
I don't know where you went to do the closing, but I would go to and attorney that specializes in real estate. You could have the purchase voided. Most attorney's won't charge just to ask questions, however they will want to take a look at the paperwork and over here in VA they usually charge about $100 to review the paperwork. For future reference you should always be extra carefull when making a business transaction with family.
2006-08-31 12:41:05 · answer #4 · answered by jdecorse25 5 · 0⤊ 0⤋
Unless you have title insurance...which I doubt, if there was no title search done...you have little recourse.
Consult with a real estate Attorney, s/he may be able to help you.
2006-08-31 12:42:37 · answer #5 · answered by mand 5 · 0⤊ 0⤋
It really depends on where you live as to what your options are. You need to seek out a real estate attorney.
2006-08-31 12:38:50 · answer #6 · answered by Anonymous · 1⤊ 0⤋
yikes - yeah talk to an attorney. Did you ever record the new deed? Auntie may not have lied - I have encountered people that didn't know...
2006-08-31 12:44:16 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You need an attorney who specializes in real estate law to sort it out. You might be able to claim fraud.
2006-08-31 12:38:17 · answer #8 · answered by notyou311 7 · 1⤊ 0⤋
You can pick your friends,but not your relatives....
Well depends on what state you live in. but I think you would be responsible for unpaid taxes
2006-08-31 12:45:55 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Get a good Lawer asap!!
2006-08-31 12:41:28 · answer #10 · answered by Vilady5 2 · 0⤊ 0⤋