If someone sells land with an encumbrace or has another parties vested interest. Is this illegal and what should be done?
2007-03-05 05:48:16 · 4 answers · asked by Plato 5 in Politics & Government ➔ Law & Ethics
There's nothing illegal about selling land with an encumbrance IF it was disclosed. If it was not disclosed, it's quite illegal.
2007-03-05 06:04:17 · answer #1 · answered by David M 7 · 1⤊ 0⤋
An encumbrance is a lien on the property. A mortgage is a lien registered in the registry of deeds; if a plumber or a carpenter was not paid for their work, a mechaics lien is registered with the registry of deeds. A sale of such property is legal, as long as the lien holder or holders are paid in full up front and the lien or liens are already included with the price.
2007-03-05 13:57:44 · answer #2 · answered by nixdad96 5 · 0⤊ 0⤋
No its no illegal. As to the encumberance part ...this simply means that the land is subject to a license, or easement or the like. This happens in land sales all the time. For example...a landocked neighbor has an easement to use a strip of land of a neighbor to reach a nearby road. The neighbor who is subject to the easement can sell their property.
2007-03-05 13:54:03 · answer #3 · answered by Dr. Luv 5 · 0⤊ 0⤋
This is why the purchaser should buy title insurance. All leins need to be registered with the recorder of deeds to ensure that the interests of all parties can be preserved.
2007-03-05 14:06:08 · answer #4 · answered by MH/Citizens Protecting Rights! 5 · 0⤊ 0⤋