Buying or Selling a Home/First-Home Worries

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Expert: - 8/11/2009


Question
Hi, my husband and I just bought our first home in Florida. It was a foreclosure and got a great deal on a true fixer-upper, but we have some worries after we closed that we have not been able to get any help with.

1 - We believe there is a section of the house that used to be a patio and they illegally closed in. We bought the house "as-is" but they at no time disclosed that there was anything illegal. We closed less than a year ago and were recently told that there was a possibility that the sellers were still responsible for bringing this up-to-code for us depending on how much time has passed (it has been less than a year), so we wanted to find out how this works.

2 - We bought this house from Bank A, who was representing Bank B, the legal owner on all records. There were several companies/banks involved in the transfer, so on our "closing" our Special Warranty Deed was signed by Bank A (not the registered owner) on November 1, and a Quit Claim Deed was signed by Company B (the registered owner) to Company A on November 18. The documents were recorded into Public record in the County in the correct order 3 months later (01/2009), but my question is... can Company A sign a property to us on November 1 that they did not own until November 18? Which date is the legal date of the document, the signed date, or the recorded date? Our biggest concern is that there is not a clean line of title and this could cause problems for us when we go to sell the house. We have tried to contact our closing agents (the Title company) and they do not understand and insist that the legal date is the recorded date and there is no overlap. What can we do?

Please help!!
Thanks!

Answer
Hello Vanessa - Sorry for the delay in my reply. My recommendation is to immediately contact a real estate attorney. (1) There is a requirement for Seller Disclosure of known, or should have known, conditions and issues with a residence. Disclosure is still required whether the seller is an investor or not. There are construction code issues that may relate to the enclosure and improvements made to your property that may be costly to rectify, or be a health or safety  concern. You should seek counsel to protect yourself from unnecessary expense or damages. (2) The chain of deed is important although whether the deed date(s) or recording date(s) control will be determined by whether you are in a 'title theory' or 'lien theory' state. You must seek legal counsel as advice concerning the conditions which need to be met and the issues as a result of the way yours was handled would require legal advice and the act of practicing law... which of course a REALTOR cannot do. Please be certain to contact an attorney who possesses 'real estate' experience as not all members of the bar practice the same areas of speciality. Laws, standards of real estate practice, and construction codes are different in each state which require local talent. I wish I could be more helpful. You can also try to contact a real estate licensee, who is also a member of the National Association of REALTORS, in your city and inquire as to their interpretation of your situation. You can locate an agent by visiting www.realtor.com and select the search for an agent button. I wish I could provide more information but please let me know if I can be of any further assistance. - Todd

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Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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