Tax Lien After I Bought
I bought an apartment building on 10-02-04. I then resold the building for $35,000.00 The closing was set for 11-10-04. On the day of the closing, the previous title company told me that there was a problem.
There was delinquent taxes and a lawn lien from the city. The title company did not pay the necessary liens off at closing and did not record the deed until
10-28-04. In the meantime the city foreclosed on the property and sold it at auction on 10-18-04. NOW I DON'T EVEN OWN THE PROPERTY.
I told the title company they are negligent for my thirty-five thousand dollar profit. They said they are not.
Two questions:
Even though my title policy only covered the property for what I bought it for, shouldn't they be negligent for my profit? It's not like they didn't know about the liens.
Secondly, can a city foreclose on a property for grass cutting lien? Isn't this unconstitutional?
How long after you bought it did it get sold at the tax sale and if you were the new owner how come you were not notified?
Did you check the settlement papers to see if they included information on the liens? Especially tax liens. Did you pay them at the closing? If you did then the title company is at fault and should remedy the situation. If not then it was your responsibility.
The title insurance should remedy any cloudy title issues.
The city can put a lien.
The tilte comapny didn't record the deed untill after the foreclosure sale took place. I actually closed on the property two weeks before the foreclosure sale.
The title company knew about the liens. They didn't pay them on time. The had two weeks. They should have been paid the day of.
On what terms did you buy this building? Was it a 100% finance project?
Do you have something documented that states they knew about these liens?
I would review your contract with them and if you can't find what is specifically covered ask them to reference it for you or you are going to go see an attorney.
I would go see an attorney either way with that kind of money involved. They should be able to consult with you for little to nothing. Find one to do it on a contingency basis.
Are the liens mentioned in the settlement papers or not? Does not matter what they knew if you cannot prove it i.e. it has to be documented somewhere. Look in the settlement papers - the HUD-1 and also on the title insurance it will say what liens existed.