Can a Property be Deeded without Consent,Permission?

Can a Property be Deeded without Consent,Permission?

Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes

We had a discussion about a tenant in common property with a loan on it. One of the members deeded over the property without signature (acknowledgement) of the second party and now the lender thinks that the second party is responsible for the whole loan.

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Greg H.Pro Member
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Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
10y

A deed has to have offer and acceptance to be valid.  However, even if the deed was valid it does not release one from liability on the note.  A release or partial release of lien is the only instrument that will get one released from the note

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  • Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    @Greg H. thanks for that it is amazing everything you do in life you need id signatures but you can transfer the deed to a house legal or not with little fanfare 

  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    All tenants in common hold an individual, undivided ownership interest in the property. This means that each party has theright to alienate, or transfer the ownership of, their ownership interest. This can be done by deed, will, or other conveyance. In a tenancy by the entirety (a concurrent estate between married persons), neither tenant has the right of alienation withoutout the consent of the other.

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    10y
    Originally posted by @Account Closed:

    @Greg H. thanks for that it is amazing everything you do in life you need id signatures but you can transfer the deed to a house legal or not with little fanfare 

    That is true ! However, I remember reading about someone getting prosecuted for deeding a property without the knowledge of the grantee.  Come to think of it, we all have come across properties that we would not want to be needed to us for free 

  • Real Estate Investor · State College , PA · Member since 2009 · 594 posts · 173 votes
    10y

    @Account Closed

    The loan along with all liens on the land records will follow property.  That what they do.

    That is why senior liens stay with the property after a foreclosure sale, right?  The bank may call the loan but that is their call.

  • Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    that is for sure @Greg H.

  • Real Estate Investor · State College , PA · Member since 2009 · 594 posts · 173 votes
    10y

    Let me clarify, not loan, but mortgage or deed of trust

  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    @Account Closed  The debt is secured by a lien on the property.  So... the main and first recourse of the bank would be to foreclose.  If the foreclosure sale does not bring in enough money to pay off the debt, it might also be possible to get judgements against the people the borrowed the money.  That depends on the state.  If one of the people that had borrowed the money gave away their right to the property that would have NO impact on the foreclosure or them having a judgement put against them.

    It might actually cause a due on sale acceleration of the note.

  • Real Estate Investor · State College , PA · Member since 2009 · 594 posts · 173 votes
    10y

    @Account Closed

    Totally agree.  

    Although it is interesting when you look at the mortgage satisfactions listed on the land records, in that those instruments do not list both of the original borrowers when one of the initial owners in no longer in the picture.

    For example Bill and Sue got a house and a mortgage.  Later on Sue signs the house over to Bill.  Divorce?  Bill pays off the mortgage and the mortgage satisfaction only has Bill's name on it. 

    Its fine and all since the mortgage is no longer of interest, but I find it a little out of character for the land records, which are suppose to be so complete.

  • Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    none of this speculation becomes legit until we hear from @Bill Gulley

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y

    It's really pretty simple......there is nothing a mortgagor can do, without the agreement of the mortgagee, that would transfer/eliminate their liability....regardless of what agreements, documents, transfers, divorce decrees, QCD's, etc. the mortgagor executes, period.

  • Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    Thanks @Wayne Brooks that is pretty much what I thought although a hml lender seemed to disagree ,but even more troublesome is having property  deeded without acknowledgment even though it might not be valid, but would seem to require a legal process to reverse 

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y

    Not really sure why it matters...the HML's recourse is foreclosure on the asset, and personally I assume against the actual borrower.

  • Real Estate Investor · State College , PA · Member since 2009 · 594 posts · 173 votes
    10y

    @Account Closed

    I read the grantee would need to get a court order stating that the transfer was null and void from the beginning.  

    If someone did put your name on a deed and you did not know it, as well as not pay the property taxes I believe this could hurt you.  The county could get a judgment against you which would show up on your credit score.  Furthermore, if someone got hurt on the property and you are the recorded owner it  could be a nightmare.  Especially since you would have no insurance on the property.

  • Attorney · Winchester, VA · Member since 2015 · 726 posts · 387 votes
    10y

    I would recommend that the OP speak to a licensed attorney in their state of operation, as I am seeing legal issues beyond the mere act of conveyance here; Primarily I see issues of fraudulent conveyance, and the possibility for a judgment creditor to potentially file a suit to void the transfer. This depends entirely on local law. OP, do not go down any of the rabbit holes you may see in this thread. Secure your legal rights by talking to counsel.

  • Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Account Closed:

    @Account Closed

    I read the grantee would need to get a court order stating that the transfer was null and void from the beginning.  

    If someone did put your name on a deed and you did not know it, as well as not pay the property taxes I believe this could hurt you.  The county could get a judgment against you which would show up on your credit score.  Furthermore, if someone got hurt on the property and you are the recorded owner it  could be a nightmare.  Especially since you would have no insurance on the property.

    I am not sure how often this happens,probably a lot more with husband wife quit claims ,but it scary how easy it could be done Thank you

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