All Forum Posts by: Tom Gimer

That is an expedited tax sale process used to sell "unoccupied" property... essentially vacant board-ups without any active utility accounts. 

If you're sure it's a good BRRRR candidate (sounds like a full gut+) I would look into whether obtaining a quitclaim deed from the foreclosed prior owner would affect the title insurance analysis. It's also possible the tax sale would not appear in a refi title commitment... really depends on lender requirements and how far back the tax sale was.

Good luck.

The inquiry goes much deeper than that and it's definitely not so simple and clear. Whether this would be viewed under the BFP doctrine of well-developed AZ case law or whether the statutory framework for transferring real property by affidavit (outlined and analyzed in this case: https://caselaw.findlaw.com/court/az-court-of-appeals/146015...) would apply depends upon the property value and all of the facts of the case. If you read the above case Bob may lose under both... and be forced to pursue the fraud / breach of fiduciary duty claims.

@Peter Walther I've given this some more thought. 

The only representative required to sign the deed and convey a 100% interest in the land signed it. Bob and the other 2 branches of heirs are only entitled to share in the residuary estate. Their signatures were never going to be required to convey the land. The power to transfer it lies solely with the PR.

You're looking at this from a title insurance perspective. Look at it from the perspective of a bona fide purchaser for value... the end buyer. He/she has a deed to the land executed by the Estate's legal representative. Tell me upon what legal basis Bob still has an interest in the land rather than the proceeds.

Peter, most people are not going to understand the defrauded vs. attempted to be defrauded issue. And whether there is still a vested property interest vs. whether it has been stolen as intended. Think HomeTitleLock and how people perceive the effect of a fraudulent deed.

The heirs are going to need to spend cash they may not have to protect their interests. If they do nothing, they've lost their inheritance. That's defrauded in my book.

 I guess you don't do construction loans.

It's possible the buyer didn't obtain TI... also possible the claim would not be covered by the policy because if he/she was aware of the undisclosed heir, the buyer created or assumed the problem.

@Peter Walther @Chris Seveney

I believe Bob has a 1/5 interest... meaning the buyer owns only 40% of the property.

Here's the law on failing to record LIC in Maryland...

Within 15 days after the contract is signed by both the vendor and purchaser, the vendor shall cause the contract to be recorded among the land records of the county where the property lies and shall mail the recorder’s receipt to the purchaser. This duty of recordation and mailing of receipt shall be written clearly or printed on the contract. Failure to do so, or to record as required under this section within the time stipulated, gives the purchaser the unconditional right to cancel the contract and to receive immediate refund of all payments and deposits made on account of or in contemplation of the contract, if the purchaser exercises the right to cancel before the vendor records the contract.

Oh and @Account Closed yes, you hijacked the thread.

PR defrauded 3 branches of siblings/descendants... not just 1.

If the buyer was aware perhaps take immediate action to attach the proceeds and unwind the deal.

@Account Closed If there are "heirs", there is no will to probate. How do you know who the true heirs are? What are Jill, John and Bob... 3 children of a deceased parent?

The title company should be able to rely upon official probate paperwork, but once they are given notice of a potentially undisclosed heir, that may create a legal duty to inquire further and perhaps a duty to the undisclosed heir. If that is the case Bob would need to prove his case under some negligence theory (or quasi-negligence theory which allows purely economic damages) or some consumer protection statute in X state.

So, IMO it's possible but not probable.

@Terence Zhao Whether you purchase the land itself or purchase an easement, you would approach the owner of the property upon which your existing house encroaches with an offer. If terms are agreed to they are incorporated into a final agreement which would be recorded among the land records. Your surveyor would be needed to prepare the legal description of land acquired / easement area.