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Updated over 3 years ago on . Most recent reply

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Riju Krishna
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Lien on property - advise sought

Riju Krishna
Posted

I am unsure if this is the right forum for this post. Apologies if it isn't. I need some advise - 

I am currently in transaction (all contingencies removed) for a property. The final disclosure package showed a lien from the owner's soon to-be ex husband (apparently there is some divorce proceeding, and the soon to-be ex husband filed a case against the real estate/property). I brought this to the attention of my realtor who reached out to the title company. The title company then sent us an amended report with the lien removed. My concern is - Can the ex husband file a case against me once I have bought the property. I reached out to an attorney who said there is a possibility of him filing a case to null and void the transaction. Is that just a hypothetical (because anything can happen), or has anyone experienced something similar? Any advise is hugely appreciated. 

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Will Fraser
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
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Will Fraser
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
Replied

I would lean HEAVILY on the title company here.  This is exactly the kind of thing that title insurance is built for.  When you say that the title co sent you an amended report with this removed . . . did they list this as an exemption on your title insurance policy, or they removed any mention of the lien from the soon-to-be-ex?

I would be VERY hesitant to sign any title closing docs that list that as an exemption, but that may just be me. 

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