Home Buying in Dallas>Question Details

Chelley, Other/Just Looking in Dallas, TX

Special Warranty Deed

Asked by Chelley, Dallas, TX Fri Sep 12, 2008

We are leasing a house with the option to purchase the house from a builder in June 08. We pulled records and he sold the house under a special warranty deed in April 2008. This should be illegal to lease a house to someone that you don't own.. Could I get some feed back on this?

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Just to be clear, Realtors are trained in the law regarding real estate. At a minimum they must learn the Law of Contracts given by state approved schools.

To say that Realtors cannot be trusted to give advice is absurd. However, real estate law cannot be practiced by Realtors unless they are also attorneys. Almost all Realtors will refer you to a lawyer if the question is about the application of the law or if you need specifics about your circumstances.

My suggestion is to find out what you can directly from the parties involved before dragging an attorney into the picture. The attorney will ask you the same questions concerning your agreements and what documentation you have before rendering an opinion.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Sun Nov 23, 2008
Is your option to purchase recorded in the public records?
The "specialness" of the deed may be that your claim on the property is excepted in the conveyance. You should ask first of the builder what has happened, and if necessary, consult an attorney with a copy of both the deed and your lease/option documents. (I can refer you to one.)
While you have an interest in the property, until title actually transfers to you, the builder owns it. Your attorney can explain this to you. The option to purchase does not transfer title to you, so you don't own it. Your option may place a claim on the property. If the claim is unexpired and valid, title may have conveyed subject to your claim.
Renters often puzzle over what happens to their lease when a property is sold. The lease is generally assigned to the new owner and the renter's lease stands so long as both parties follow the terms of the lease. A new owner normally cannot change your terms or force you out, unless you breach the lease. Renters sometimes make the mistake of just moving out or failing to pay, and being forced out. Don't get in trouble with the new owner. Discover the facts first. Ask the bulder what he did, then ask the new owner what he expects, before you traipse off to a lawyer.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Sun Sep 14, 2008
You need to call a Real Estate Attorney to get clarification on this. I don't recommend getting the advice of a Realtor because this is Real Estate Law.

If you need some good attorney help - call me 972-679-9029
Robert J Russell
http://www.robertjrussell.com
0 votes Thank Flag Link Fri Nov 21, 2008
If you have a lease to purchase transaction you should have a lawyer. It is strange but thinks like that could happened with lease to purchase deal.

Viktor Taushanov
Realtor
Coldwell Banker Residantial Brokerage
972-758-2045 Direct Line
214-697-6797 Cell
viktor.taushanov@cbdfw.com
0 votes Thank Flag Link Sat Sep 13, 2008
Sounds strange. Who did he sell it to? Special Warranty deeds are often used in foreclosure type situations. Did anyone come to the house? Did anyone look at it? Have you received any kind of notices? Who are you paying rent to? Is it possible he bought the house out of foreclosure in April 2008 and is leasing it to you with an option to buy after that time? If you are buying without a realtor make sure you have an attorney look at the contract to ensure it is a good contract. When you are ready to buy the property make sure you close at a title company.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Sep 12, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
A special warranty deed most likely just has fewer warranties than a statutory warranty deed. A quit claim deed has no warranties, but it's still valid to transfer property.
0 votes Thank Flag Link Fri Sep 12, 2008
A special warranty deed is a legal deed. in most cases it is used when purchasing a foreclosure. something makes it "special" so you really would want the deed reviewed by a real estate attorney or title company to be sure. goo dluck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Sep 12, 2008
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