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Updated over 8 years ago on . Most recent reply

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Polina Kin
  • Kailua, HI
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Need Help! Seller gave me a BAD deed!!!

Polina Kin
  • Kailua, HI
Posted

I purchased a single family house in Montgomery, AL...on Ebay. The seller wasn't the original owner, he was reselling this property for someone else. After I transferred him the money for the property, he sent me a Warranty Deed along with the house keys. A few weeks later, after the deed was recorded, I was told that the legal description in the Deed is not correct. The seller did the closing without an attorney, so this mistake was made. After I talked to one of the local attorneys, they told me that I would not be able to re-sell this property due to an error in the legal description. What should I do?

I have no contact information of the original owner who could issue a corrective deed, so that's a deed end. 

My plan was to rehab this house and rent it out, but not having a correct legal description in the deed makes me hesitant if I should even invest money in this property.

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Jerry W.
  • Investor
  • Thermopolis, WY
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Jerry W.
  • Investor
  • Thermopolis, WY
ModeratorReplied

@Polina Kin, I am not licensed in AL so there may be laws that are different and my advice may or may not apply.  If this was in my state the first thing I would is order a title insurance policy to check out if it is legitimately yours.  If it showed clear title to the guy you bought it from then his contact info should be in the chain of title.  Most states have laws that require the addresses be put on the deed.  If not the tax notices must be sent somewhere and the local county treasurer should have the last address.  If that fails there are Quiet Title actions.  You are supposed to serve the other parties, but if you cannot find them you can publish your summons to them in the newspaper.  The quiet title should fix the description defect.  You need to ask a local attorney however as laws on property ownership are controlled by state law so they can vary a lot.  Hope that is of some help @John Thedford

  • Jerry W.
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