I bought land without a clear title…what can I do?

[Tyler Sample]

I bought a lot for $750 from a retired pastor, he guaranteed me title was clear so did a deed transfer but I went to sell it and could not get clear title. I have a different buyer now that wants it. I’m obligated to tell him about not getting clear title correct? Should I somehow sue the pastor? What can I do to get my $750 back? This was two years ago when I purchased. Please help!

[Kevin Sobilo]

@Tyler Sample, what kind of deed did the retired pastor give you? If a quit claim deed was used, you have no recourse against the pastor because a deed of that type only says the seller is giving you whatever interest they might have in the property. They don't even guarantee they own the property at all! But if they do, they are passing it to you.

If they used a Special Warranty or General Warranty deed you might be able to go after the retired pastor. A General Warranty deed guarantees the title back to the beginning of time. So, in that case the pastor would be liable. However with a Special Warranty deed they are only guaranteeing the title for the time they owned it. So, if the issue on the title was created BEFORE the pastor owned it, you would again be out of luck.

You should have had a title search and paid for title insurance when you bought it. It isn't always easy to know if there are issues on the title because MANY things can affect it. An unpaid judgement, municipal utility, unpaid contractor, error in the chain of deeds 50 years ago, unpaid estate taxes of a prior owner who died while owning the property, etc.

Anyways, first I would look at the deed to see what type it is. Then I would see what the title issue is and when it was created to see if the pastor has any liability.

What is the title issue anyways?