All Forum Posts by: Peter Walther

Call me paranoid but anytime I hear of a property priced well below its readily observable value I immediately think fraud.  Either the seller knows something bad is coming down the road and wants to get out of town before it arrives or you're not dealing with the real owner.  Keep in mind your title policy will only pay you up to the amount of insurance for a covered claim so if you pay $50k for a house you think is worth $150k, the policy amount is $50k since that's what you paid and the deed turns out to be a forgery resulting in a failure of title you only get at most $50k.  Even if you put $25k in repairs the day after you close, your self insured for that amount.

You're correct Tom but I believe in Florida the SOL for professional liability i.e. attorney malpractice, is two years. 

I think you need to back out the prepaids and initial escrow from your calculation since they're not really a closing expense.  They're for paying taxes and insurance.

Nat, this is a very complex issue.  First, I would hesitate to rely on a complaint drafted by a UK attorney for you to file yourself (pro se).  I believe if he's recommending a quiet title suit he doesn't understand the problem.

Second, I'm unclear what you purchased.  Generally condo real property is in one of three categories, units, common elements and limited common elements.  Generally only units are sold to purchasers with a pro rata interest in the common elements and a exclusive right to use the limited common elements servicing that unit coming with it.  To sever any of those three from the condominium requires the agreement of anyone have an interest in the condo including the developer if (s)he continues to own units, the condo association, anyone owning a unit in the condo and any lender having a mortgage on any of the three including units because the lender also has a lien on the unit owners undivided interest in the common elements.  What did you buy?

Third, to remove real property from a condo requires strict compliance with Florida laws governing condominiums.  You need an attorney with condominium experience if you want to fix this problem.  If everyone with an interest is in agreement with severing the property, perhaps they would also agree to allow you to purchase some additional land adjacent to what you bought sufficient to meet the city's requirement.

Fourth, is your former attorney correct when she writes the initial contract did not have any contingencies?  If so had did the contingency get added?

Last, I believe this matter is way to complicated for you to rely on any advice you receive on this board.  If you want to salvage anything other than a lesson well learned you need to sit down with a good attorney and figure out what your options are.

You can also consider filing a grievance against your attorney with the Florida Bar Association.

https://www.floridabar.org/pub...

I would just request the payoff and see if the demand matches your expectation, if it doesn't you can go back and compare math.

Nat you're starting to move from title related issues to possible attorney client relationship issues.  If the policy issuing attorney was in fact your attorney, rather than a closing agent who happened to be an attorney, prior to signing the contract, I'm not sure why she believes it was not her responsibility to one ensure the requirement to remove the property from the condo was set up to be completed pre closing rather than post closing or to at least make sure you were aware of the possible downside to signing the contract the way it was.  In addition, I don't understand why she believes it's not her responsibility to follow up with the Seller to make sure the requirement is complied with.  She might charge you for doing so but to decline to do so is mystifying.

You may need to retain new counsel to assert your claims against anyone who might have liability but as John wrote, the cost may out weigh the possible benefit.  As an aside I might still file a claim with the title underwriter, the worst they can do is deny coverage and perhaps they will look into their agent's actions.

First off, whether you get title and then resell the property or sell the contract, in my opinion whoever comes into title needs a title policy insuring their interest in the property.

Second, I assume you're aware Chapter 11 is a section of the Bankruptcy Code that allows businesses and individuals to reorganize their affairs to payoff their debts.  When of the benefits of getting a title commitment and policy is that the title agent should review the bankruptcy to confirm the Grantor has the authority to convey the property.  The title company is not doing it for your benefit per se, but to be able to issue you a policy without exception.  The policy isn't telling you title is ok, only that you'll get the policy benefits if there's a covered problem.

Third, I would always be reluctant to give the Seller the earnest money deposit, it should go the escrow agent handling the closing.  Giving it the Seller is a recipe for problems, particularly in this case unless you or someone who knows how, has reviewed the bankruptcy to confirm the Seller's authority.

If your Seller/Lender indicates an unwillingness to provide the payoff information refer him/her to Florida Statute 701.04 which provides in part:

701.04 Cancellation of mortgages, liens, and judgments.—(1) Within 14 days after receipt of the written request of a mortgagor, a record title owner of the property, a fiduciary or trustee lawfully acting on behalf of a record title owner, or any other person lawfully authorized to act on behalf of a mortgagor or record title owner of the property, the holder of a mortgage shall deliver or cause the servicer of the mortgage to deliver to the person making the request at a place designated in the written request an estoppel letter setting forth the unpaid balance of the loan secured by the mortgage.(a) If the mortgagor, or any person lawfully authorized to act on behalf of the mortgagor, makes the request, the estoppel letter must include an itemization of the principal, interest, and any other charges properly due under or secured by the mortgage and interest on a per-day basis for the unpaid balance.(b) If a record title owner of the property, or any person lawfully authorized to act on behalf of a mortgagor or record title owner of the property, makes the request:1. The request must include a copy of the instrument showing title in the property or lawful authorization.2. The estoppel letter may include the itemization of information required under paragraph (a), but must at a minimum include the total unpaid balance due under or secured by the mortgage on a per-day basis.

Also suggest that they speak with a good real estate attorney for advice on possible results for failing to comply.