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Friends of mine have had their house for sale, and have contracted to sell it to other friends. No agent involved, as both are neighbors. However, there have been several issues with the sale of said house. The first is that when the sellers originally bought the house, it was never properly recorded with the county. They were totally unaware of this until closing had been set, and the fact was uncovered. Apparently the attorney who handled their original closing on the house has subsequently been disbarred, to add to the "fun". It has also come to light that the sellers never purchased title insurance when they bought the house. (Personally that failure boggles my mind, but it is what it is.)
The buyers are now, understandably, concerned about the purchase of the house. It would be a good deal for them, as both their house and the one they want to buy are next to each other.However, the buyers are now worried that the title will always be clouded, which they would then need to disclose if they ever sold the house in the future. Apparently, they could not get title insurance now either on the house due to the "cloud".
I mentioned to the buyers that, if it were me, I would have a session with a good real estate attorney to try and figure out any possible ramifications to the purchase. From the history of the home's ownership, it's doubtful that there would be a claim forthcoming, but you never know. Aside from that, what possible actions can the sellers and/or the buyers pursue to solve this situation? I realize that legal advice cannot be given; I am just looking for ideas for legal remedies that they might not be aware of. I just hate to see either party flounder around the way they are; it's a good deal for both if the legal hurdles are surmounted.
If they can't get title insurance, it does seem like a situation where an attorney is the best suggestion. (And this is coming from a person who has what is probably an irrational fear of attorneys, LOL.) When there was a question of a cloud on my title, I resisted talking with an atty at first but was eventually glad I did and got it cleaned up.
Since I've recently gone through a similar experience, I'd be happy to talk further with you about it if that would be helpful. I'll be off the computer most of the week but will be popping in to check messages and update posts on Thursday.
Friends of mine have had their house for sale, and have contracted to sell it to other friends. No agent involved, as both are neighbors. However, there have been several issues with the sale of said house. The first is that when the sellers originally bought the house, it was never properly recorded with the county. They were totally unaware of this until closing had been set, and the fact was uncovered. Apparently the attorney who handled their original closing on the house has subsequently been disbarred, to add to the "fun". It has also come to light that the sellers never purchased title insurance when they bought the house. (Personally that failure boggles my mind, but it is what it is.)
The buyers are now, understandably, concerned about the purchase of the house. It would be a good deal for them, as both their house and the one they want to buy are next to each other.However, the buyers are now worried that the title will always be clouded, which they would then need to disclose if they ever sold the house in the future. Apparently, they could not get title insurance now either on the house due to the "cloud".
I mentioned to the buyers that, if it were me, I would have a session with a good real estate attorney to try and figure out any possible ramifications to the purchase. From the history of the home's ownership, it's doubtful that there would be a claim forthcoming, but you never know. Aside from that, what possible actions can the sellers and/or the buyers pursue to solve this situation? I realize that legal advice cannot be given; I am just looking for ideas for legal remedies that they might not be aware of. I just hate to see either party flounder around the way they are; it's a good deal for both if the legal hurdles are surmounted.
Friends of mine have had their house for sale, and have contracted to sell it to other friends. No agent involved, as both are neighbors. However, there have been several issues with the sale of said house. The first is that when the sellers originally bought the house, it was never properly recorded with the county. They were totally unaware of this until closing had been set, and the fact was uncovered. Apparently the attorney who handled their original closing on the house has subsequently been disbarred, to add to the "fun". It has also come to light that the sellers never purchased title insurance when they bought the house. (Personally that failure boggles my mind, but it is what it is.)
The buyers are now, understandably, concerned about the purchase of the house. It would be a good deal for them, as both their house and the one they want to buy are next to each other.However, the buyers are now worried that the title will always be clouded, which they would then need to disclose if they ever sold the house in the future. Apparently, they could not get title insurance now either on the house due to the "cloud".
I mentioned to the buyers that, if it were me, I would have a session with a good real estate attorney to try and figure out any possible ramifications to the purchase. From the history of the home's ownership, it's doubtful that there would be a claim forthcoming, but you never know. Aside from that, what possible actions can the sellers and/or the buyers pursue to solve this situation? I realize that legal advice cannot be given; I am just looking for ideas for legal remedies that they might not be aware of. I just hate to see either party flounder around the way they are; it's a good deal for both if the legal hurdles are surmounted.
I'm an escrow officer in Florida, I like these questions because I can learn more, but I need more information, what exactly was the problem with the recording? We have 2 friends in this situation, the first seller's would have signed a deed giving the property to our current seller, it had to be the deed, what was wrong with the deed? Or was it recorded in the wrong county? It's probably an easy fix as long as the original seller's are still alive... Whatever correction needs to be done can get recorded literally right before the new deed between our 2 friends and that can clear the title.. As long as it gets recorded before the new deed, whatever instrument is needed to clear the title..
Friends of mine have had their house for sale, and have contracted to sell it to other friends. No agent involved, as both are neighbors. However, there have been several issues with the sale of said house. The first is that when the sellers originally bought the house, it was never properly recorded with the county. They were totally unaware of this until closing had been set, and the fact was uncovered. Apparently the attorney who handled their original closing on the house has subsequently been disbarred, to add to the "fun". It has also come to light that the sellers never purchased title insurance when they bought the house. (Personally that failure boggles my mind, but it is what it is.)
The buyers are now, understandably, concerned about the purchase of the house. It would be a good deal for them, as both their house and the one they want to buy are next to each other.However, the buyers are now worried that the title will always be clouded, which they would then need to disclose if they ever sold the house in the future. Apparently, they could not get title insurance now either on the house due to the "cloud".
I mentioned to the buyers that, if it were me, I would have a session with a good real estate attorney to try and figure out any possible ramifications to the purchase. From the history of the home's ownership, it's doubtful that there would be a claim forthcoming, but you never know. Aside from that, what possible actions can the sellers and/or the buyers pursue to solve this situation? I realize that legal advice cannot be given; I am just looking for ideas for legal remedies that they might not be aware of. I just hate to see either party flounder around the way they are; it's a good deal for both if the legal hurdles are surmounted.
What is the nature of the clouded title? Typically, when a commitment for title insurance is issued, it details the requirements which have to be met in order to transfer good title--and in order for a title insurance policy to be issued. Has a title company provided a list of requirements? If not, I would think that would be the first course of action. Whatever is discovered, neither of your friends should close without engaging the services of a good real estate attorney.
What is the nature of the clouded title? Typically, when a commitment for title insurance is issued, it details the requirements which have to be met in order to transfer good title--and in order for a title insurance policy to be issued. Has a title company provided a list of requirements? If not, I would think that would be the first course of action. Whatever is discovered, neither of your friends should close without engaging the services of a good real estate attorney.
The nature of the clouded title, as I understand it, is that the closing attorney for the sellers never recorded the deed with the county when they bought the house in 2004. That attorney has since been disbarred. The sellers also didn't buy title insurance when they purchased the house.
The nature of the clouded title, as I understand it, is that the closing attorney for the sellers never recorded the deed with the county when they bought the house in 2004. That attorney has since been disbarred. The sellers also didn't buy title insurance when they purchased the house.
Well, that's not good. If the former owners are still alive, your friends should try to track them down and ask them to write another deed.
Also, did the disbarred attorney work on his own...or was he part of a law firm? If he worked for a law firm I'd check with them to see if they have any of his former files. You never know, the deed could be in those files if they still exist.
The sellers also didn't buy title insurance when they purchased the house.
Title insurance is a requirement of lenders for the benefit of the lender. When the rubber meets the road, title companies do their best to wiggle out of the claims payment side anyway. Not buying title insurance doesn't affect anything in the transaction. An unrecorded deed isn't necessarily a big deal either, just record it, done.
Neither issue rises to the level of a "clouded" title.
If the title company doesn't want to issue a policy, there's a fix for that, usually a "quiet title" action. The title company is the place to start for what they want, not working yourself into a froth or hiring attorneys.
Title insurance is a requirement of lenders for the benefit of the lender. When the rubber meets the road, title companies do their best to wiggle out of the claims payment side anyway. Not buying title insurance doesn't affect anything in the transaction. An unrecorded deed isn't necessarily a big deal either, just record it, done.
Neither issue rises to the level of a "clouded" title.
If the title company doesn't want to issue a policy, there's a fix for that, usually a "quiet title" action. The title company is the place to start for what they want, not working yourself into a froth or hiring attorneys.
If they had the deed, I'm sure that they would record it. Not having the deed is a different matter.
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