Home Buying in Gramercy Park>Question Details

CR, Home Buyer in New York, NY

Is there any law that would require the seller to notify the buyer that the property doesn't have a seasoned title?

Asked by CR, New York, NY Sun Jan 24, 2010

I purchased a home and went through all the financing just to have the lender pull the deal at the last minute because the property was only titled to the current owner for about 30 days (flipped).

Who is responsible to notify the seller of this situation? The seller, my agent or is the mortage officer supposed to figure out what type of loan I can get?

The only one that lost on this deal was me...

Thanks

CR

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Answers

9
Robbie Vaughn, Esq.’s answer
You appear to be in need of immediate legal advice; you should consult with an attorney immediately.

Do you have a contract signed by the seller in your possession? If so, then consult with an attorney regarding filing an action for specific performance or damages. This would compel the seller to sell the property to you or pay you $$$. Your recourse will depend on the terms of your contract.

The above is very basic! You need an attorney to conduct a detailed analysis of your situation and advise you accordingly. I really hope you are able to consult with an attorney before your scheduled closing date. Good luck!


Robbie L. Vaughn, Esq.
New York Attorney
Real Estate | Foreclosure Defense |
Bankruptcy | Landlord-Tenant Matters
70 West Main St.
East Islip, NY 11730
631-780-4758 (Phone)
631-930-3235 (Fax)
http://www.Rlvaughnlaw.com

We are a debt relief agency and a law office that helps people file for bankruptcy relief under the United States Bankruptcy Code.

This is not legal advice.
Web Reference: http://Rlvaughnlaw.com
0 votes Thank Flag Link Tue Jan 26, 2010
Okay, then that would negate my first response to you. And with the information you have given, I would strongly recommend you seek the advice of good real estate attorney.

Wish I could be of more assistance.
0 votes Thank Flag Link Sun Jan 24, 2010
Well there is a listing agent. You are right, it is complicated.

The listing agents wife owns company A. Her company bought the property. He owns a real Estate Agency and listed it on behalf of his wifes company.
0 votes Thank Flag Link Sun Jan 24, 2010
Sounds like you have a bit more of an issue than described in your original question. If your current attorney is not doing his job, you need to find a new attorney. If I am understanding your comments, there was not an agent involved on the listing side?
0 votes Thank Flag Link Sun Jan 24, 2010
Thanks all for your answers.

No one asked the question including myself.

I did check the county records (on line) and up until Monday there was no information with regard to the property being sold on the court house steps. All it showed was the last sale in 2005. An investor (his wife's company) actually bought the property on the court house steps and his (husbands) company listed it for sale but didn't inform us of the recent purchase. My agent told me it was a foreclosure and thats how my broker proceeded which doesn't require a seasoned title.

The other part of my frustration is how much my broker dragged his feet. I had to keep pushing him while all the wile he said we would be fine. Hell, I didn't even get a good faith estimate until this past Thursday after several requests.

My attorney hasn't been much help (besides taking my money) and the seller has avoided calls and emails since Thursday as we are pretty positive that he has a higher offer on the table just waiting for mine to fall through. Hence the reason for avoiding us. My agent sent him an amendment to change it to a cash sale 2 hours before the deadline (Friday at 7) but as usual hasn't responded and it is now Sunday. We are suppose to close by this Friday. I am told we should have an approval tomorrow but it is past the contract date.

Any suggestions?

If all else, is there any way he can keep my $5,000 deposit? I do not get a good feeling.

Thanks
CR
0 votes Thank Flag Link Sun Jan 24, 2010
Chuck,

You might want to check out the latest Blog that I just read, written by Patty Da Silva. It is a change in the 90 waiting period. I'm not sure if it would help you on this transaction or not, but definitely worth looking at.
0 votes Thank Flag Link Sun Jan 24, 2010
I am assuming you became aware of the situation when your title search was delivered--What is your attorney advising at this point--he/she is your best source of information--your attorney and mortgage officer should have known about the law--and if the seller knew, he/she should have warned you beforehand, but unfortunately under no obligation to do so--again, what is your attorney suggesting.
0 votes Thank Flag Link Sun Jan 24, 2010
In the State of Wisconsin, we have tax record open to the public. It's the very first thing I pull before meeting with a potential seller. The problem is that in many instances the tax records are not up-to-date. However, if the name on the tax record didn't match the name on the listing contract, that should have been a red flag.
0 votes Thank Flag Link Sun Jan 24, 2010
Chuck first your loan officer should have told you about this law before you starte dto look so you could ask, if your buyers agent knows you are getting an fha mortgage then they shoudl be researching the history for you and/or letting you know the history. it ultimately is up to you to ask them to find out for you as you are the one who has teh most to lose. The sellers doesnt have to disclose this though most investors buying and fixing houses for resale are now telling buyers becuase they also want the quickest sale with no delays, so this delays them as well. It is a 90 day seasoning period and different mortgage companies have their own guidelines as to how long after the deed is recorded on teh previous sale or foreclosure they will start processing your mortgage. It is a good idea for everyone to disclose or ask this question from now on.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Jan 24, 2010
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