Is having a property under contract defaming the title?

[Mike Schorah]

I put a property under contract. The seller told me that he was the executor of the will and had authorization to sell the property. I assigned the contract to another buyer.

I ended up finding out that the seller didn’t have the authorization to sell it.

Later on the seller hired a probate attorney and a month ago the probate attorney told me to back out of the contract. The cash buyer said he wanted to execute our right to the contract.

I was watching a YouTube video that said that if you defame someone’s title, they could sue for big damages. They will break it down on cost per day and their pain and suffering and the biggest part is the lawyer fees.

Is having a property under contract defaming the title or do you need to record a memorandum?

[Wayne Brooks]

@Mike Schorah Typical “defaming of title” would be filing an affidavit/memorandum of contract in the county records, then not releasing it. Simply having a contract doesn’t defame title, as no one even knows. Could the attorney cause you other problems, maybe under a statute of frauds/inducement, depending on the entirety of the situation….maybe.

Bottom line, if the seller did not have legal authority to sell the property, the contract is likely void on it’s face. Assuming your contract is significantly below market value, you do Not want to try and enforce/justify it in front of a judge.