Question about Title issue

6 Replies

I am trying to buy a lot that adjoins me, and there is issue with the title. It’s complicated so try to follow me: 1980 property was willed to by partition Feed to family. Multiple heirs. I have all located and have a contract with them. 1996 MAN A sold this property to LLCx With a quit claim deed. 1998 LLC X sold to MAN B with general warranty deed. 2000 MAN B sold to MAN C with general warranty deed. Tax office shows MAN C as current owner. Family says original quit claim deed is fraudulent. So does that invalidate other transactions ? Best way to clear Title ?

 It is my understanding that a quitclaim deed does not transfer ownership in the state of Texas – but  if the transaction from LLCX to man B was conducted through a title company, they should have caught that at that time

Hey Jon, 

I would definitely hire a Real Estate lawyer to help you with this matter. He will have to check all the contracts/deeds to see which is fraudulent and which is not. If there is another way to clear title, the lawyer should be able to help you with that as well.

Thanks & Never give up!

Hire a title company to do it for you, that offers title insurance. They'll figure out what needs to happen to clear the title and issue insurance and can lead you from there. Don't try to figure out title issues on your own unless you're a skilled legal practitioner in real estate. 

Thanks guys

@Jon Rood

@Jeff W.

A quit claim in Texas is valid for transferring ones interest in a property. Typically, it can be used to transfer from one spouse to another in a divorce or a transfer from a person to an an LLC. The issue comes about as title companies will not issue title insurance on most other transfer via QC

Jon- Assuming a Lake Livingston lot? Who has been paying the taxes and any maintenance fees since 1980?  If it is not the estate, in my opinion their interest in the lot is gone

The first transfer could have been internal as I outlined above.  I assume B and C are not heirs?

I would take the contract to the title company and order title insurance. This will get you a commitment with any Schedule C requirements to cure. Keep in mind if this is a low dollar deal the title company may choose not to offer much assistance to help cure any issues 

The title company will almost certainly not issue a OTP based on the scenario and you'll have to inform the title company about the claim of invalid transfer. Doesn't matter what the family believes, it only matters what the title company determines is needed to issue a policy. You can't clear title until you know who the actual (or assumed) owners are, then you can work backwards from there. 

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