All Forum Posts by: Alex Smith

Thanks all. It turns out there are four liens, with the 2nd being about 25% of the sales price. The title company is still trying to figure out amounts of the others. My understanding was that by law the seller must disclose any liens prior to putting the house on the market. I guess they knew of two but did not officially disclose them. At this point it appears the sale will be unlikely from the seller not having enough funds. I’ll try to get reimbursement for expenses since taking this down another road by going to court for specific performance and forcing the sale of the house would likely leave them in bankruptcy.

Hello,

I am a first time homebuyer and have had a house under contract in Texas for one month. The close date is next week (5/30). Late last week the title company informed my realtor and I that the seller has a second lien on the house, and if unresolved, will not be able to sell it.

The contract we used mentions a return of only earnest money if the title is not cleared. However I’ve been told that the seller failed to inform their agent that there was a lien. Therefore the house should not have been put for sale in the first place. I’ve fulfilled everything on my end of the deal and spent $1,500 in inspections, appraisal, etc and would want to get that back in addition to earnest money should the deal fall through.

The house is vacant and the seller has already moved out, so it seems it would be in their best interest to close this deal. But with the close date approaching it does not seem like they will. In the event the title does not clear, what options/legal options are available? What would you do?

Thanks.