PLEASE HELP! I purchased an older 2 story house that needs a lot of work. The problem is my house is split on two parcels but only one parcel came with my deed. I am not sure how this is possible but from what I gather this is what happened. The original owner acquired both parcels together and deeded one of the parcels to their stepdaughter. The step daughter later got a loan on the house and foreclosed on the property. I am a newer investor and was not familiar with the whole process, however my realtor had explained to me that in order to close this deal I had to use the bank that sold me the property for the title search. This should have been a red flag but I wasnt familiar as I mentioned before. Now I am getting ready to do work to this house however I am worried about putting significant money into the house if I will never be able to sell it. I dont understand how i could have purchased a house split on two parcels and own the whole house. This seems like it will cause an issue when I go to sell the property. Any advice would be great or past experiences.
Step one is get to a local RE attorney, now! When you "use the bank that owned the property", do you mean "use their title co.", or do you mean "used them for a loan to buy the property"? I'm guessing you didn't get a loan, since a survey would have been required. It seems the bank was sloppy win their research when they made the loan, then so we're you. Looks like you're either going to have to buy the other parcel, or file some type of lawsuit. You may have some recourse with the listing broker/bank assuming they advertised a "whatever number of bedrooms/bath house se" for sale. I am assuming the house doesn't fit legally on the one parcel you bought?
Did you buy title insurance ? If so make a claim
The listing was listed as a 2000 sq ft house with the lot listed 3 bed 1 bath which is consistent with my tax bill. I did not get a loan on the property it was a cash deal but the house was on both lots since before the owner sold it to his stepdaughter. The bank that owned it and foreclosed on it said I had to use their title search company tonclose the deal. I would have thought that there was something illegal about selling either parcel individually without tearing down the house. The interesting thing is that I plan on jacking up the house and pouring a new foundation. Now if something were to happen such as as the house falling downs on me then in theory the guy who owns the others lot would also responsible
This is can happen when title companies make mistakes. The company who screws up with honor new policies to cover their butts, because eventually they will have to fix it.
Did they disclose you were only getting 1 lot?
they did disclose I was getting one lot but the center of my house is the dividing line between the lots so I will have trouble when they do a survey. I've been told that it's possible that I will be able to get the other property if at any point in time the lot belonged to the house as long as it was recorded
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