Fchat Advice Needed: Real Estate Situation

If someone died on the property of other than natural causes and the seller failed to disclose that fact you should be able to get out of the contract.

 

Do yourself a favor and pay a real estate attorney a few hundred $ to advise you on what you should do.

 

Most of the bank owned stuff I bought lets you walk away if you want to lose your deposit... which is typically $1000. Thats been in every contract for the one's I picked up...

The HUD ones also let the bank break the deal at any time, for $1000 "damages" paid to the buyer...

Look at your paperwork. Talk to a title company - they may refuse to insure with pending litigation, giving you an out...

 

With pending litigation, the title should be clouded--I'm amazed the seller found a lender to fund the loan.
Why is the seller looking for your financing?

There are so many outs for the buyer in a typical contract that you should be able to walk if you want.

Are there any agents or brokers involved in this? If so, they will likely get sucked into the litigation,
and I doubt that they will want any part of it. Run to a good attorney and look for a good way out.

Good luck!!

 

^^^ Answer.

 

The attorney route is going to cost you. Just ask around some knowledgeable real estate people, free attorney consultation, real estate forums, Creonline.com etc. This is not a real tough one. Make sure you're getting the same answer from several pro's. I'd just tell the seller to buzz off especially if he didn't disclose stiff's in the place. You can get out of this one pretty easy so IMO you shouldn't have to spend money on exiting. Good luck.

BTW, now you know why the place seemed so cheap.

 

Hey guys. I'm a licensed Real Estate Agent in Texas. I do know that HERE (not all states are the same) a death on the property doesn't have to be disclosed unless it was a murder or due to a disease like HIV/AIDs. I don't know what kind of contract you have, but there should be some sort of Title Insurance provided by the seller to you. If that was not checked when you entered into the contract, something's fishy. Also, if there is a cloud on the title, it may take YEARS to get this sorted out. Unfortunately it looks like you're going to have to hire an attorney to help you if they're not going to let you out of the contract.

What I tell all my clients with properties like this one (too good to be true) is to have an option period. That means that for minimal compensation, you can walk away from the property for any reason at all within X number of days. Usually the option fee is like $250 or so. The seller pockets that cash and there's your out.

Also, there should be a stipulation in the contract about faulty, bad, or clouded titles being a way to void the contract. Again, I don't know what state you're in my friend, but that's pretty SOP for most state's real estate transactions. Now, what you COULD do is this. Purchase the property, let it go into tax arrears and let the city/school district put a tax lein on the property. They will auction it off for the back taxes due, but once the city becomes the owners of the property, they clear the title of all clouds, discrepencies, etc. This is what a few investors I know have done with strip malls and other properties they've purchased but have bad titles.

Anyway, I don't know if I helped at all or confused you more. LOL My honest advice is to grab yourself a Real Estate Lawyer or go speak to a local Broker about what's going on. They'll usually be more than willing to help you out with some advice. Just be sure that the Broker knows you're not looking for legal advice, only Real Estate advice. We as Agents and Brokers cannot offer legal advice, it is specifically written as such.

I wish you luck my friend, let us know how it turns out.

Laters,

Brian