All Forum Posts by: Galen Dawes

In your contract, you want certain things to protect you and your earnest money. You want a clear and marketable title. You also want a contract that makes it easy for you to get your earnest money back if you were putting up any and the deal doesn't go through. I'm disputing over $2500 earnest money as we speak on a house where the seller clearly did not have a clear title. GAR Forms...read up about them. It sounds like since its a friend of the family, it may not be an issue but its something to think about for the future. Call a couple of closing attorneys. They may be able to help you out with some of your questions. Most importantly, you should think and plan out what exactly you plan to do once you purchase the property. If you fail to plan, you are planning to fail. And I'd much rather see you do well with your investment.

Spoke to general counsel at MHS. He is saying that if he files the interpleader action, it would go to state court. He also said that it can take up to a year to actually go to court and price of a lawyer might add up to the total or half of the earnest money. He is suggesting me and the Seller split the money. This kind of sounds like I loose either way. The main reason he is suggesting splitting the money may be the best option for both parties is because the time it takes to go to court and the cost of the lawyer. The general counsel said he wouldnt file the interpleader action in magistrate court because it can be appealed and the process would start completely over in state court if it was appealed.

Inside the Beltline area is hot. The West End is pretty cheap. I prefer the East End...East Atlanta, Kirkwood, Edgewood, East Lake...The areas I named are not far from the Druid Hills area. Grant Park, Ormewood Park...A lot of investors are flipping in these areas. Profit margins can be very strong as the comps are there. Plenty of gentrification in some of those areas but do your homework. I know a few investors buying up a lot of property in Stone Mountain and Lithonia for rentals.

Thanks

With MHS filling a interpleader action, what would be my next step, small claims court?

With Morris Hardwick and Schneider filling an interpleader action, is my next step small claims court?

The contract we have does not use the word clear title. It says marketable title.

Seller agrees to furnish a marketable title to the said property and agrees to convey by Limited Warranty deed to Purchaser at closing, subject only to the following:
a. All valid restrictions of record; and
b. Zoning ordinances affecting same
Purchasher shall have reasonable time after acceptance of this Contract in which to examine title and in which to furnish Seller a written statement of objections affecting the marketability of said title. Seller shall have a reasonable time after receipt of such objections and if the Seller fails to satisfy such valid objections within a reasonable time, then at the option of the Purchaser, evidence by written notice to Seller, this contract shall be null and void.

Our contract also says :
Buyer or Seller may extend the closing date six days upon notice to either party prior to or on the closing date if the seller cannot satisfy valid title objections. If the right to extend the closing date is not exercised, the right shall be terminated.

The seller still feels that since I did not terminate or extend the contract before the closing date, he is due the earnest money so he is not willing to cooperate in any way that will mean me getting back the earnest money.

Thanks for the feedback. I heard back from the closing attorney today, MHS. After sending the title back to the title insurer, they said that

The title company is not willing to insure do to the fact that there are 2 Assignments that were given to the Michael M. Dobbs IRA and H&R Family Partnership. The underwriter is saying that since these two entities were not given notice to the law suit and were not included in the law suit then they will not be able to insure this transaction without exception.
Do to the Earnest money agreement that was signed by both you and seller if you all don’t agree to the release of the earnest money then my firm will have to file an interpleader action.

I wanted to know how I should go about filing a claim against a particular LLC located in Lebanon, GA which all I have is a Po Box. I'm located in DeKalb County in Stone Mountain, GA. Do I need to find a company to serve the principal of the company with the claim? Do I need to file the claim in the county the principal of the company lives in? I had a contract to purchase a house in Atlanta with a clear title. The title was not clear at the time of closing. The Seller does not want to sign the termination and release to release the earnest money back to me from the closing attorney. No GAR forms were used. No agents or brokers were used. Only me, the buyer;Seller-LLC and the closing attorney