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I have a contract to buy a property in Chicago. I've got the loan all approved and ready to close. However we couldn't close because the seller has title issues. She's postponed the closing twice already. The title report showed that there was another heir to the property (this was an inheritance property). Let's call him CC. The seller and CC never known/met each other. They live in different states. CC never known that he had a 50% interest in this property. The seller attorney tried to get the deed of conveyance signed from CC but failed. The seller who also had a 50% interest in the property has been taking care of the estate in the last 5 years since her grandparents passed. She paid for a new roof, new porch, new boiler, other minor repairs, and collect rent (this is a rental property). Now her lawyer is talking filing a quiet title to remove the cloud from the title. So they could sell it to me.
My question is that could the seller really do that? They each has 50% interest equally. What legal leg does she have to quiet CC? If she could do it, I'm willing to wait for the suit to be over to commence the purchase. Also, how long does typical quiet title suit last? Are we talking a few months or almost a year?
The fact that the seller's attorney already tried to get the other party to waive their rights to the property (via a quit claim deed) and they refused is NOT a good sign. If the other party contests the action this can be a GIANT headache, the chancery court judge will ask for evidence that that goes back to the inheritance and I have LOTS of very shady "magic handwritten wills" show up under such circumstances.
Without more details about the relative "pot of gold" that the WHOLE WILL encompassed and just how "down on their luck" the other party might be it is impossible to say what sort of timeline you are facing (or how much 'drinking money' they are looking for...).
You will need to TALK TO YOUR LENDER about an extended rate lock, open ended closing and then decide if the FEES for that still make this a deal worth pursuing...
OP- You have a mess on your hands. CC, the other owner, does not want to convey title. The house has been rented for five years. Technically, CC should have been getting 50% of the rent, less the repairs completed and paid for by your seller. CC may be owed a large chunk of change which your seller may not want to come out of the proceeds of the sale.
Hence, the seller trying for quiet title. Although who knows what counter suit CC may have in the works. CC & your seller are going to have to come to some sort of agreement on how to divvy up the estate equitably.
Until you know exactly how these sellers are each approaching the situation, you are just going to have to sit back and wait to see what happens. You can also walk away. If you have a closing attorney you might want to discuss with him/her.
chet everett, yes I've talked to my lender and they're willing to "re-certified" the loan. This is a commercial loan. At least, my lender is very cooperative (I'm building relationship with them for many more future business). Also, thanks for the link and the insight knowledge of the legal speed of Cook county :-(. Your reply is very helpful!
willow wind, totally agree with you that the seller should share the income with CC. Frankly I don't know how they negotiate behind the curtain... Sadly, my attorney is nowhere to be found. If she's easily approachable, I wouldn't have to ask this question here. :-( I'm thinking about changing an attorney. She performed poorly during the past 3 closings. I'll close more deals in the future and need a reliable attorney to work with.
Have they gotten in contact with "CC" and he doesn't want to sell...or have they been unable to contact CC? If he doesn't want to sell, I don't believe that a quiet title action is even in order. They should be looking for a forced sale with a division of the proceeds. It sounds like they haven't been able to contact him but, either way, it's probably going to take a while.
jackmichigan, thanks for your reply. Yes the seller has negotiated the deal with CC. In the beginning, CC agreed to sign the paper. However the paper never got sent back. When the seller attorney tried to call to get the status of the paper, CC stop responding . He stopped responding to the seller/seller attorney. I've heard that CC himself was also an attorney (yuck... this could make things even more difficult).
I've never heard of the term "forced sale with a division of the proceeds". I'll do some research to see if that's a possibility... I don't mind waiting. However I'm only willing to wait if the seller has a chance to win the case and close on the deal.
How does the price the seller you are in touch with paid for the roof, porch, boiler, etc. compare with the rent CC may want to recoup? The seller would want CC to pay half the repairs.
Our of curiosity, any clue about the former owner and why he may have clued in one heir but never mentioned the other heir to anyone, including neither heir?
SmartMoney, not sure what you mean. "quiet title = payoff to ever is signing"? Typo maybe? "ever" should be "whoever"?
Cully, I have no idea about net (income less expense) during the 5 years the seller has managed the property. The property belongs to the grandparents. The seller is the heir (grand daughter) on the grandmother side while CC is the heir (nephew) on the grandfather side. Both grandparents passed.
itznehamali, not sure what you mean. "won't take a long period"? typo?
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