Expert: Dick Dennis - 9/13/2011

Question
QUESTION: Dear Dick Dennis:

I would greatly appreciate your 'wisdom' in understanding the following problem. I purchased a home in March 2011. The day after I realized that the Warranty DEED only conveyed half of the property purchased. I right away contacted the title company which turned it over to their title insurance attorney. He did not do anything for a long time, telling me that he can't find the information I supplied that, indeed, the title is wrong. Finally we had a meeting on location and he saw that the title was wrong. He mentioned too that the same title company two transactions #title transfers# earlier had made a mistake in the title description. Now he told me that the title company will hire another attorney for me and that attorney will get a Quit Claim from the two title's back previous owner# for me for the missing half of the property.

Reading on your excellent column about Quit Claims I #an advanced senior who bought this condo with total life savings# am now insecure about this matter and want to be sure that I will not have a problem with my property #where a previous owner combined two condos into one#in the future in case I will have to sell it and move to an assisted home.

I was under the impression that in order to correct the title company's mistake that they would have to issue a NEW correct DEED and record this correct DEED including the other half of the property.

Can that not be done? Do I have to accept this Quit Claim?

Thank you very, very much in advance for helping me to answer my questions.

With friendly regards, Chris

ANSWER: Permit me to tell you what happened to me about 20 years ago, Chris (has it been that long ago, already? Wow!). The title company made a big mistake on conveying title to me (too long a story to explain here). They had to pay me $20,000 and correct the error.

The difference between my situation and yours is that I knew what to do to have the error corrected, being a real estate broker. Yours is a lot different in that the title company's attorney was dragging his butt from the start. That tells me they don't want to spend the time and effort to put everything in place the way it should be. And another time another title company recorded a forgery on my transaction. You can be assured they corrected that lickity-split.

While there is nothing wrong with accepting a quit-claim deed to correct your situation, I strongly suggest you consult a good local REAL ESTATE attorney and tell me/her your story. I can guarantee you that your situation will be corrected to your satisfaction very, very fast. And who knows? Maybe you might get a few sheckles out of this, too (by the way, any of your attorney fees will probably be taken care of by the title company. There is no reason why this was not corrected immediately. I believe they are taking advantage of your age (hey! I just turned 80 today myself!) A good attorney can be found through the local Board of Realtors. They have an attorney who takes care of their legal problems. Ask for his/her name and my bet is that your situation will be corrected fa-a-a-as-s-st. I do wish you well.

Dick Dennis
dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Thank you, Mr. Dennis, for your prompt response!! I very much appreciate you volunteer your wisdom.

One question though, please: In the meantime I was introduced to another attorney, whom the title company hired/paid to rectify this situation. I guess they did that because the title company's title insurance department can't be impartial? This other attorney who has his own legal company is in the process of contacting the previous owner to give me this quit-claim deed for the missing portion in the warranty deed.

I am a bit at a loss now as to what to do next. Do I have to accept this quit-claim deed? This attorney acted as if I should be happy that the previous owner will be cooperating. It is obvious that the title company really made mistakes and the two buyers before me on this property, following the recording mistake by the previous owner did not notice the mistake; thus the title company just copied this mistake now to my warranty deed too. I did notice it and have now this 'mess' to clean up.
:-(

Anxiously awaiting your second response. Chris

Answer
As long as an impartial attorney is straightening things up -- and getting paid by the title company that made the error -- I see nothing wrong with how you're being treated in this matter. In fact, I would say they are doing EXACTLY what should be done to make sure you do not have any problems one day in the future when you will be selling your condo (you must be assured that you will have marketable title).

The title company has the state's department of insurance looking over their shoulder virtually all the time. So, if at any time you feel something is wrong, I recommend you do contact the AZ dept. of insurance. Chances are you will not have to. Let me know if you would like to receive a free copy of my monthly real estate advisory. I do wish you well.

Dick Dennis
dixiedee13@aol.com