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hi there , Big problem! in Vermont
I was about to close on a home on March 30 2011 and the attorney called and said there was a problem with the title and the bank will not issue the mortgage because we couldn't get title insurance.
There is a lease hold issue. This has been a nightmare.
The property was Glebe land back in the 1700's and then as time went by it was sub divided and the sellers parcel /deed said school lease.
in my research i found out that technically if you lease land you pay the lease fee each year to the town and do not pay property taxes.
She has been paying taxes all these years.
Can she get her taxes refunded?
Where does her title insurance come in?
The seller has to fix this problem with the town records so that the chain is clear. She is elderly and does not have a computer and needs help.
She had a new deed drawn up by her attorney who is an idiot and took to much time...and the matter is now before the select board.
The select board had to wait until the town attorney advised them on what to do. and they only meet 2x a month!
They have to post a warning in the paper and at the town office for 30 days before they can sign off on the new deed that omits the "school lease"
It is 6 weeks since closing date and they have not started the 30 day notice thing!
We have to re do all our paper work with our bank as it all expired!
I know the seller very well. should she call her title insurance company right away and get them involved to pay for the legal fees? We do not know how much this is going to cost her yet. Should she fight to get her taxes back and just should have paid the lease fees all these years?
can she do all this herself and pay for the attorneys and get a refund from the title insurance company?
call them later after the select board votes and files the records and we close?
what should she do.
we are not backing out on the deal as we already live here and rent from her and want to stay and own it.
Glebe associated with the Church of England ceased to belong to individual incumbents as from 1 April 1978, by virtue of the Endowments and Glebe Measure 1976; instead, it became vested on that date, "without any conveyance or other assurance," in the Diocesan Board of Finance of the diocese to which the benefice owning the glebe belonged, even if the glebe was in another diocese. From 1571 onwards, Church of England glebe was listed in a document called a glebe terrier, compiled by the incumbent of the benefice.
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Originally Posted by cybersecretary
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should she call her title insurance company right away and get them involved to pay for the legal fees? We do not know how much this is going to cost her yet.
Short answer is NO.
They are the one holding the bag for any damages and costs by THEM not catching this problem (or bonding it over) whenever it was that the current owner bought the property. Curious: How long ago was that?
She needs a good RE attorney to be doing this for her.
Not the old family friend... someone currently practicing locally.
The attorney will deal with the title insurance company after doing their abstract and other homework and actually know whats what.
Quote:
Should she fight to get her taxes back
can she do all this herself
pay for the attorneys and
get a refund from the title insurance company?
call them later after the select board votes and files the records and we close?
what should she do.
She needs an actual currently practicing RE attorney...
preferably from that town or at least the same county.
She needs them TODAY.
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we are not backing out on the deal as we already live here and rent from her and want to stay and own it.
All in due course... one bridge at a time. que sera sera
thanks!
she bought the property in 1987.. got divorced and has a quit claim deed.
so you are saying that her attorney can deal with this for her? I think he is old and does not know what to do. she should look for a new attorney?
We are waiting for the town to record the change then we can get our attorney to get the title insurance and deal with our bank about it being clear and marketable . then we were going to close.
will she be able to fight this after she no longer owns it?
He told you what to tell her - she needs a REAL ESTATE attorney, not her old family attorney. She needs one who knows real estate law and who has experience with QUIETING TITLE. That's an important phrase. To Quiet a Title means to establish clear ownership. At this point in time, you said she has a quitclaim deed. There is a reason for that - the title wasn't clear and she probably does not have title insurance.
Contact the Vermont State Bar Association Lawyer Referral Program for an initial half-hour reduced fee consultation. Mention you have a real estate issue concerning Quieting Title.
thanks..
i will talk with her.
I do know that her attorney drew up a new Quitclaim deed for the select board to sign that omits the "school lease" words. This first quit claim was because of divorce.. the deed when married was a warranty deed.
i hope that this new quitclaim deed that omits the lease hold will satisfy our bank and title company .
She really needs to talk to a real estate attorney. A quitclaim deed warrants absolutely nothing. There may be an issue of adverse possession as well by the payment of property taxes over a period of time. There are a lot of issues and sub-issues packed into your original post that will require the expertise of a skilled professional.
There is so much lack of understanding as to what a deed is or does. A deed is not a deed. A deed takes a form giving to another "whatever interest" the deed-holder has. In the case of quit-claim deeds, nothing is clear or promised. It often states "whatever interest I may have". Good grief! Think about those words. In effect it says, IF I have an interest, it's yours. And that's exactly why it's used in 2 situations: divorce and when there is a cloud on the title. A cloud is when the ownership is not exactly clear for whatever reason, but very much like the OP's situation.
A quitclaim deed transfers whatever ownership interest a person has in a property. It makes no guarantees about the extent of the person's interest. Quitclaim deeds are commonly used by divorcing couples; one spouse signs all his or her rights in the couple's real estate over to the other. This can be especially useful if it isn't clear how much of an interest, if any, one spouse has in property that's held in the other's name. (However, a quitclaim deed doesn't relieve the individual transferring ownership from the mortgage, if there is one.)
Quitclaim deeds are also frequently used when there is a "cloud" on title -- that is, when a search reveals that a previous owner or some other individual, like the heir of a previous owner, may have some claim to the property. The individual can sign a quitclaim deed to transfer any remaining interest.
As has been said many times, you need an attorney experienced in Quieting Titles.
You already live in the house, so time is not a problem.
Like everyone else said, she needs a good real estate attorney, you should get one too to represent your interests to make sure this deal goes through. It may take awhile, but I'm sure it will get worked out.
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