All Forum Posts by: Peter Walther

 No such thing, a forged deed passes no title.

 No such thing, a forged deed passes no title.

Unjust enrichment is used when there is NOT a contract... but under circumstances where it would be inequitable for the defendant to keep the benefits received from the plaintiff without compensation/restitution.

If there WAS a contract the plaintiff would just sue for breach. The existence of a contract is actually a defense to an unjust enrichment claim.

The plaintiff here was defrauded (albeit by a third party) into providing a large benefit to the property owner. Not as a gift and not voluntarily... so it's worth further research. And if it all fails, I love @Ed O. 's idea.

Your friend really needs to get some advice from a good real estate attorney who practices in the area where the property is.

That written, first, as has been pointed out several times, it sounds like your friend has received the benefit of his title policy, so I doubt there's any recourse there.  For the next time, in my experience, a title policy can be issued for the expected value of the property after the improvements are completed.  An Owner's Policy will probably have a clause that limits the amount of insurance to the value of the property as of the date the claim is made.  In your friend's situation, the loss would not be the amount he has spent improving the property, but the value of the property as improved by the partial construction.  For a lender's policy, it would be the amount of money disbursed under the mortgage/deed of trust. Now that's the amount of insurance and not necessarily the amount of the loss which could be a different calculation.

Second, if memory serves me, a claim for unjust enrichment requires the cause of action be based on a contract between the parties where the plaintiff (your friend) performed a service for the defendant (the property owner) for which the plaintiff had an expectation to be paid.  In my opinion your friend might have a cause of action for equitable improvement, but the possibility for success depends entirely on the specific facts.  Again, you friend needs to get to an attorney.

Lastly, your friend is not looking to have title restored to him as he never likely never had title since generally title cannot not pass under a forged deed unless the deed transfer has been recorded in a Torrens title state, he's going to ask to be paid back for the value of the improvement.  For example, if the improvements don't meet code, he shouldn't expect to be repaid the $200k he paid to make the improvements.  He should expect to be ordered to remove the improvements at his expense.

Your friend really needs to get some advice from a good real estate attorney who practices in the area where the property is.

That written, first, as has been pointed out several times, it sounds like your friend has received the benefit of his title policy, so I doubt there's any recourse there.  For the next time, in my experience, a title policy can be issued for the expected value of the property after the improvements are completed.  An Owner's Policy will probably have a clause that limits the amount of insurance to the value of the property as of the date the claim is made.  In your friend's situation, the loss would not be the amount he has spent improving the property, but the value of the property as improved by the partial construction.  For a lender's policy, it would be the amount of money disbursed under the mortgage/deed of trust. Now that's the amount of insurance and not necessarily the amount of the loss which could be a different calculation.

Second, if memory serves me, a claim for unjust enrichment requires the cause of action be based on a contract between the parties where the plaintiff (your friend) performed a service for the defendant (the property owner) for which the plaintiff had an expectation to be paid.  In my opinion your friend might have a cause of action for equitable improvement, but the possibility for success depends entirely on the specific facts.  Again, you friend needs to get to an attorney.

Lastly, your friend is not looking to have title restored to him as he never likely never had title since generally title cannot not pass under a forged deed unless the deed transfer has been recorded in a Torrens title state, he's going to ask to be paid back for the value of the improvement.  For example, if the improvements don't meet code, he shouldn't expect to be repaid the $200k he paid to make the improvements.  He should expect to be ordered to remove the improvements at his expense.

The low judgement amount vs the estimate market value leads me to believe these may be HOA or COA foreclosures in which case 1st mtgs will survive and the purchaser will be taking subject to. Do you know how to search/examine title and read/understand foreclosure pleadings?