Corey

Obviously, Canadian Law may be different than the laws govering Florida but maybe my response will help you ask the right questions in order to eliminate some of the stress you are feeling now.

Usually your purchase and sale agreement will have a clause covering the discovery of defects rendering the title unmarketable.

If your seller has enough equity in the home the liens can be eliminated and you will have a good chance of closing by Friday. When a sale generates adequate funds to cover the lien, you usually close on time or within a few days after the original closing date. The lien amount is recorded; however, actual funds required to satisfy the lien, due to interest, etc will need to be verified prior to closing. It could be the issuer of the lien has not responded as yet or has some small delay.

Problems arise if the seller does not have enough equity in the home to cover the amout of the liens. I would ask the title company if the equity from the sale will cover the liens.

If the seller is not clearing enough funds to eliminate the liens, you may have a problem.

My next question would be. Does the seller have adequate funds from another source to eliminate the liens? And does anyone know if the seller is willing to use those funds. Once these questions are answered, you will have a better idea as to whether or not you can expect to close by Friday.

The following terminology in in our purchase and sale agreement covering your situation:

If title evidence or survey reveals any defects which render the title unmarketable, BUYER or closing agent will have five (5) days from receipt of title commitment and survey to notify SELLER of such title defects. SELLER agrees to use reasonable diligence to cure such defects at SELLER's expense and
will have thirty (30) days to do so, in which event this transaction will be closed within ten (10) days after delivery to BUYER of evidence that such defects have been cured but not sooner than the date of closing. SELLER agrees to pay for and discharge all due and delinquent taxes, liens and other
monetary encumbrances, unless otherwise agreed. If SELLER is unable to convey to BUYER marketable title, BUYER will have the right to terminate this Agreement, at the same time returning to SELLER all surveys received from SELLER, or BUYER will have the right to accept such title as SELLER may be able to convey, and to close this transaction upon the terms stated herein, which election will be exercised within ten (10) days after BUYER’s receipt of SELLER’s written notice of SELLER’s inability to cure.

Corey

I agree with Jody Jones. The title company should have revealed these defects in their search and should have made sure they were cleared before they authorized the closing. Damages are certainly due you. First I'd get an attorney and then I would sue like crazy. First I would sue the seller and the listing agent for not disclosing the defect (the seller had to know). If that goes nowhere I'd look at the title company. What I don't understand is why the title company didn't just clear up the lien with the sales proceeds. I am not a Canadian agent so my words here may be worthless. I saw your question and thought it was interesting.
If your home is sold and you agreed to possession on a certain date you will have to move, unless other arrangements have been made, or face the possibility of forced eviction. Sounds like a really messy situation. Good luck.

You need to talk to your agent about the best way to approach this. I would question why the title or closing company is just now informing you of the liens the day before closing? I would also consult an attorney that specializes in real estate law in Canada and ask them what your options are. For sure any costs incurred by you in staying in your sold home until you can close on the new home should be borne by the seller who you are buying from.

Jody Jones
Century 21 Landmark Realty
Elkhart, IN

Title company is accustom to working on these issues, the title company MIGHT BE ABLE to place these funds owed in escrow where you can close with clear title.
http://www.lynn911.com http://www.homes-for-sale-dallas.com

Does this cost me anything? I'm being told I will have to pay the cost of the buyer of my house to change there legal documents or even close my house and "pay rent'' to them as I stay here until the other home closes if it ever does..... If it doesnt close is there a way to squash the deal with the seller of my home and stay in my current home?

Unless you want to shop for another home then you agree to a closing extension, if it doesn't close by Friday.