Closing issues- "entity didn't exist"

[Nicole A.]

What a mess. I have been trying to close on my 3rd deal for months now. The seller got rid of the deadbeat tenants. I thought all was well.

Then my title company informs me that when the seller bought the property, it was in an entity that didn't exist (even as a trade name). So they tracked down the previous owner. He had passed away, but they found his wife in Florida.

Now, they need the wife to open an estate in FL...then a foreign estate opened in Maryland...and some notoraized/signed document by the wife sent. But apparently the title company is treading lightly and she has not even yet asked for money. However, I think the title company is going to ask the seller if he will still offer this previous owner some money to move quickly with this paperwork.

I have gotten to know the seller. He said that when he bought, it must have just been a mistake and that he admits he didn't read everything...just signed, signed, signed. But, as the title company is wondering, how did he not know this was in the wrong name as he was paying taxes on the property in that name?

To make it even more complicated, I didn't know it was this complicated until recently. I had my contractors lined up to start work the day after closing was set. When it got pushed back, I thought it'd just be for a couple days as was suggested by title company originally. So my guys started work (with permission of the seller).

Now that we're at the mercy of this previous owner's wife, I don't know how fast she'll work. I can't say for sure the seller will offer her money to hurry...or that she will accept. If she doesn't in a timely fashion, then the seller will have to go to court to prove he was the intended buyer...that could take a while.

Now that I'm in this mess, what should I do? Just stop work? It's already started...demo work at least. I've bought supplies/materials.

Or could I draw up some agreement to continue on and treat the property as my own instead of stopping to get this all worked out?

[Dennis Lanni]

Ask your seller if he/she got title insurance when they purchased the property & if so go back to them. They will most likely insur it again. If not I would file a quiet title action & have Florida gal & current seller stipulate to the lawsuit (much faster than probate)- that should be enough for the title company. BTW- whatever price u paid it's probably too much.

Good luck