Nonpreforming seller. Cloud Title?

Question

I have a deal under contract. The seller originally told me it was $1800 behind on taxes. I offered $15k and an additional $2K to cover the tax lien. All was well in my world......Then the title search came back....... They are $7500 back in taxes, have a $1200 City Lien, and a $350 water bill.

Now the seller says he wants to back out. What can I do? Can I cloud the title or sue to force the sale? How do I do either of these things in Florida?

Now the seller says he wants to back out.  What can I do?  Can I cloud the title or sue to force the sale?  How do I do either of these things in Florida?

Matt Devincenzo · Answer

Look at this a different way, instead of trying to force him to perform make him want to not lose you Mr. buyer.

Explain to him that those taxes aren't going to go away, and if he doesn't sell they're going to keep getting bigger. Figure out what the approximate daily/monthly accrual rate is at 18% int and show him that everyday he delays he is losing $XX off any potential sales price. And if he waits too long someone will foreclose and he will lose the house at the tax auction.

Maybe it doesn't work, oh well worth a shot. Maybe it does and you're back on track, or he might be willing to negotiate and say if you come up $1000 he'll stay in the deal, at that point it depends on whether your numbers work or not.

Corey Scott · Answer

@Everyone Well, I ended up working out that deal so it worked out.  But just for my knowledge, how can you cloud a title if a buyer tries to backout and take a better offer?

Bill Gulley · Answer

First, you can't force a seller to sell, you may be able to make them wish they had.

Secondly, it may be an impossibility to perform due to an honest mistake and not being aware of filings or liens, might be.

Hans is correct in the usual process, if it's a case where the seller can provide good title but doesn't because he gets less money, then tuff stuff.

You can not buy from a buyer and get stuck with outstanding liens unless the property is sold subject-to those items found and his sale was to be by a general warranty deed, so he must clear the issues.

Filing a LP is a notice of legal action pending, if you file and don't follow through you might want to look up filing false claims/liens/clouding title issues, you don't want to go there in this case.

You're better off as Matt mentioned to conclude the sale, if he can't do it, walk, if he won't do it, you can ask for damages as provided for in the sale agreement.....and frankly, instead of going to the throat and having legal battles, figure up what reasonable damages might be for time and real expenses and agree to that to be indemnified.

I have found that when a seller can't or won't due to things discovered it's just better to walk away and say, well, I should do better at my due diligence next time. :)

Chris Martin · Answer

Seems like a lesson learned would be to check the easy-to-check parts before doing the contract. From your signature, I deduce you are in Palm Beach county and the tax information is easily accessible from links in the county site. Liens would be in the recorder's office...

Account Closed · Answer

Seriously.  Go find something else to buy.  It's not worth getting into an expensive lawsuit over.

Wayne Brooks · Answer

Corey, if you did use the FarBar As Is contract, then the seller is committed, as long as you didn't have any limiting language for the sellers obligations.  You can file an LP on the property, but that probably wouldn't get you the property.  Try to convince the seller his best time to sell is now.  I would think he's getting pretty close to a tax deed sale if he's a few years behind.

Winston Risser · Answer

I like what Matt Devincenzo came up with.

Corey Scott · Answer

This was on a standard realtors contract.

Wayne Brooks · Answer

Corey Fishbein, Chris is right, it only takes a few minutes to find the taxes and liens here.  Most distressed sellers "can't remmber" all those pesky liens.  But, how exactly is your contract worded, is a warranty deed specified, and did you use the standard FarBar PA?  If you have the right of specific performance, that's probably still not your best avenue.

Corey Scott · Answer

LOL Chris Martin, I learned this last week!  Wish I learned it last month!

Nonpreforming seller. Cloud Title?

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