All Forum Posts by: Peter Walther

When a person who has entered into a written contract for the sale and conveyance of an interest in real property dies before its completion, the executor or administrator of the decedent's estate, if not required to otherwise dispose of the contract, may, with the consent of the purchaser, obtain authority to complete the contract by filing an application for that authority in the probate court of the county in which the executor or administrator was appointed. Notice of the time of hearing on the application shall be given to the surviving spouse and heirs, if the decedent died intestate, and to the surviving spouse and devisees or legatees having an interest in the contract, if the decedent died testate. If the court is satisfied that it would be for the best interests of the estate, it may authorize the executor or administrator to complete the contract and to execute and deliver to the purchaser the instruments that are required to make the order of the court effective.

Section 2113.48 - Ohio Revised Code | Ohio Laws

I think your threshold question is who can you look to for failing to enforce the restrictions i.e. seller, real estate agent, attorney, title agent/insurer?  In my opinion, none of the above.  Since they don't have any kind of relationship with you, they don't have a duty to you, and you'll be lucky to get any one of them to talk to you.

As to the enforcement of the restrictions, assuming they are still valid and enforceable, as written by some of the posters above, anyone who has standing under the restrictions should be able to enforce them.  As also written above, figuring out who has standing can get complicated.  Based on what you've written it appears you not going to get the mobile home voluntarily removed so you'll probably have to pay an attorney to look into it and give you options.

You might talk with a real estate/estate attorney and see if it's possible to open a probate, have a Personal Representative appointed and obtain an order from the court authorizing the sale of the property by the PR with the proceeds being deposited into the registry of the court for later distribution when all the heirs are identified.  If the attorney thinks it can be done, obtain a title commitment before starting so you can be reasonably sure a policy will be issued when you're done.

I have run into situations where some of the heirs of the property owner have themselves died leaving heirs and beneficiaries and sometimes some of those heirs have also died.  The estate of each of those decedents may need to be delt with before proceeding with the property owner's estate.

Even if you get a title policy you may have a problem which is not covered.  If your seller files bankruptcy after the sale and the Trustee believes the sale was fraudulent because it was for below market value and seeks to set the sale aside, I think the title insurer might deny coverage.  The Exclusions From Coverage for a standard ALTA Owner's Title Policy provides:

The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys’ fees, or expenses that arise by reason of:

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law, that the transaction vesting the Title as shown in Schedule A is a:

a. fraudulent conveyance or fraudulent transfer;

b. voidable transfer under the Uniform Voidable Transactions Act; or

c. preferential transfer:

i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or

ii. for any other reason not stated in Covered Risk 9.b.

You're very welcome.

I suggest you let the settlement agent know about the letter and submit a claim to your title insurer using the procedure listed in your policy.  While it's possible the letter was sent before the lender received the payoff, it's also possible the mortgage was missed.  In either case the policy probably requires you to notify the insurer as soon as you become aware of a possible adverse matter.  If you fail to do so and the insurer's ability to defend you is adversely impacted, your coverage may be affected.

 You're welcome.

I suggest you look into joining the Central Florida Realty Investors group.  It's a member owned and operated not for profit group geared to the individual investor.  They have a main meeting the 2nd Tuesday of every month and then a number of sub meetings by location and topic throughout the month.  The first general meeting is free.   

Central Florida Realty Investors Association - metro Orlando real estate investment club (cfri.net)

Why did you go to the city?  What did you need from them to be able to move into the "house"?  Are the bedrooms and baths permitted?

I think you need to read the contract you signed and the seller's disclosures you received to see if there are any apparent misrepresentations. I assume you and or the real estate agent if you were working with one drafted, the contract. Did the contract specify the intended use was as a SFR?

I believe that under a standard title insurance policy, building code matters, zoning and other governmental restriction on the use of the property are excluded from coverage so unless you purchased an extended form title policy there probably is no coverage, but it never hurts to submit a claim.  The worst the insurer can do is deny coverage.