Anyone know real estate law?Deed help needed ASAP!

[thefed]

SO, I bought a home through a realtor. I closed through a title company the other day...they said I'd be the owner of record within an hour or so...they were going to record that afternoon.


WELL, I got a call saying to stop any renovations I'm doing, because the county refuses to list me as the owner!

Why? Well, the company I 'bought' it from, thru a well-known relator, isn't the owner of record! I knew this all along, as I talked directly to the bank that owned it. It was foreclosed on, then went to another lender, and finally the people I 'bought' it from.

The problem si that THEY havent even recorded the deed yet! SO, unless I can show a copy of the purchase agreement between the current 'owner'
and those who transferred it to them, it's a no go.

The title company said to stop all work, because it seems they arent being cooperative. They DID overnight an affadvit explaining the situation, but the county rejected it.

SO, if this can't be accomplished for whatever reason, what will I be out? I already put $1500 in the property in the form of material and labor, since I began working the day of closing. I also have utilities turning on tomorrow (excep water, because the city wont trun it on because I'm the the owner of record!)

Who will be on the hook for this? The title company? The 'owner'? How about the realtor? ME? WILL I BE OUT MY $$$$?


Anyone?

Thanks

 

[youbet]

What does your attorney say? You paid him/her to keep you from exactly this kind of situation. Time to earn his/her money!

 

[thefed]

What does your attorney say? You paid him/her to keep you from exactly this kind of situation. Time to earn his/her money!

I don't have an attorney. I used a title agency. In OH, you use a title agency to protect yourself from this kind of thing. I did indeed pay them for 'title insurance'. But THEY are the ones telling me to stop working.

I'm curious if THEY will be liable for the labor and materials I put into the property while under the impression that it was a done deal.

Whenever I've bought a home, signed the paperwork, and gotten the keys...that was it!

 

[setab]

What does the title agency say, then. It's their bad, but I'll bet they have a title opinion from an attorney. If they jack you around, it's time to go see an attorney yourself.

setab

 

[thefed]

an attorney would cost me more than the 1500 i have in it!

EDIT: I know I'll get my purchase price back (I paid cash by cert. check)

BUT, will I have any recourse on the labor and materials?

I am 90% sure this will work itself out, BUT if it doesn't I want to be prepared.

The other thing that sucks is I dont have my $$, which was from a HELOC. SO, they are going to begin charging me interest, BUT I have nothing to show for it, technically speaking. And I cant continue to work on the house with the fear that this DOESNT work out

 

[youbet]

I don't have an attorney. 

I guess it varies from state to state.  Here in Illinois, it is common to use an attorney who specializes in real estate to represent the buyer and another to represent the seller in the transaction.  And, of course, we do title insurance too.  The attorney is inexpensive, a few hundred  bux, because there isn't much for the attorney to do in most cases.  Just a couple hours of his/her clerk's time checking the records and the forms.  But, when something does go wrong, I guess they have to go earn their money. 

 

[thefed]

I guess it varies from state to state. Here in Illinois, it is common to use an attorney who specializes in real estate to represent the buyer and another to represent the seller in the transaction. And, of course, we do title insurance too. The attorney is inexpensive, a few hundred bux, because there isn't much for the attorney to do in most cases. Just a couple hours of his/her clerk's time checking the records and the forms. But, when something does go wrong, I guess they have to go earn their money.

Maybe it is a state-to-state thing? I have always used a title company. They do the title search, file all neccessary papers, offer title insurance etc/ It is, of course, an agency of my choosing....and I'd ASSUME they have an atty on hand. Then ,the clerks do all the work.

 

[Craig]

It is a state thing ... in AZ we only used title companies. In TN, they use attorneys. Frankly, the attorneys that handle garden variety real estate transactions are not litigators, nor top notch attorneys ...

thefed, if I was you, I would (1) carefully reread all of my doc's, and develop my own understanding of my legal position, and (2) send a letter to your title company officer, certified / return receipt requested, telling your brief story, and outlining your damages at this point in time. Keep it friendly, but clear.

Not a big deal, but some attorney might take this on contingency, who knows these days.

Mostly, I'd wager it will probably work out. But read those doc's carefully.

Best of luck.

 

[youbet]

Charles - I went through the same sort of thing.  In Illinois, I always have an attorney for real estate transactions.  When I handled selling my dad's house in Arkansas, it was hard to find an attorney that wanted the job.  They kept refering me to the Title Company.  Finally found one to do it and it was a good thing.  The closing was delayed, I had to head back home, and the attorney was able to handle the closing in my absence.

thefed - Good luck.  Your situation has to be aggravating! 

 

[wabmester]

Let us know how this goes. This sort of thing is exactly what title insurance is for, but it's odd that they let the transaction close without clear title.

 

[Martha]

Odds are it will all be worked out. I assume your seller gave you a warranty deed? If so, they are warranting title and are responsible to fix any title issues.

If you were issued a title commitment/policy, you can make a claim on the title insurance. Read the policy to see what you need to do to make a claim.

Apart from that, stop work for now and ask the title company what they are doing to resolve the title issues. Tell them you need to have things resolved asap because it will cost money to delay work for more than a few days. If you get a run around or things take too long (as in more than a few days), talk to a real estate lawyer. It doesn't necessarily have to cost a lot-- the lawyer's job will be getting the other people to do what they are supposed to do asap.