Commissioner's sale and deed

2 Replies

I'm about to sign a contract on a property I'm purchasing through a commissioner's sale in Alamance County and for which I'll receive a commissioner's deed rather than a general warranty deed. In such sales, is the buyer assured that there are no other existing liens on the property? I don't want any nasty surprises.

Originally posted by @Pier C. :

I'm about to sign a contract on a property I'm purchasing through a commissioner's sale in Alamance County and for which I'll receive a commissioner's deed rather than a general warranty deed. In such sales, is the buyer assured that there are no other existing liens on the property? I don't want any nasty surprises.

A Commissioner's Deed, like what you may get from an HOA foreclosure, has no warrantee, expressed or implied. This deed transfers ownership without regard to outstanding liens other than what an attorney would call the 'instant case' (the law suit and legal action enabling the Commissioner's deed itself), so hopefully you had a paralegal look over your work if you couldn't or don't know how to research the chain of title.

The limited cases I've seen, Commissioner deeds tend to have some screwy baggage. The attorney handling these cases are generally interested in getting payment to their client (e.g. the HOA) and liens are almost always in second lien position at best, so there (again from my limited exposure) is a 'race' condition often with the first position lien holder. The unrecorded claims from city inspections apply here, just like they do in trustee sales. Many of the attorney's handling these cases do few involuntary deed transfers and I think that's why title gets messy.

Your best bet is to have an attorney review whatever case file they have at the courthouse. 

Note: This post is for entertainment purposes and not to be construed as legal advice. Talk to your attorney concerning your particular legal position. 

Thank you, Chris. Very helpful. I am having an attorney research the chain of title.

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