After Settlement Issue

[Paul Thomas]

Closed yesterday on flip, started demo this am, was notified at noon that sale was voided due to sellers POA illegally signed closing docs because seller passed last week with no will. Half house is demoed, some small expenses have accrued, seller realtor encouraged her to sign docs after getting ok from title. Who is at fault? Does title company owe us damages?

[Tom Gimer]

Several issues here.

First, the contract is more than likely enforceable against the decedent’s estate. Read it.

Second, the fact that there was no will is irrelevant. Getting an estate opened and a Personal Representative appointed (in a normal world) would be a same-day event. The PR could then properly convey to you.

Third, the liability, if any, would be on the attorney-in-fact for failing to disclose the fact that the principal died and his/her power along with it. If the steps above are followed... zero liability other than perhaps some carrying costs due to delay. Now, if the title company had actual knowledge of the death, they are morons or worse and you should find a different outfit to do business with in the future.