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 Dear George: I purchased a condo and wish to resell it. Do I have to close in my name first and close again in my buyer's name, or may I close in the buyer's name?
Answer: The first thing you should do in order to sell your condo before you've closed on your sale is to check your contract. If it is made out to you as "buyer or your assigns" or does not preclude your right to assign it and there is no holding period required by a lender or condo association, you might be able to assign the purchase contract under your original price and terms. Otherwise, you are proposing to "flip" the property. Sales like this are a red flag for lenders and law enforcement folks because they are conducive to mortgage fraud. If you are trying to profit from flipping the condo, you are pretty much committed to closing on your sale first and closing on your buyer's sale as the owner. You can do it at the same time, provided all parties to both contracts agree; you end up with what the title company calls a simultaneous closing. You buy the condo from the owner at one price, and then sell the condo to your buyer at a higher price. However, if there is any third-party financing involved with your buyer's purchase, the condo is going to have to legitimately appraise at or above your resale price.
Dear George: My parents have an empty lot next to their house. They have been maintaining it for more than 20 years, and no fence separates the two properties. They have been trying to purchase this property but cannot find the owners. I saw an article about adverse possession. Can this concept help my parents?
Answer: Before attempting to obtain a property via adverse possession, do a little research on the Internet to find out who has been paying the taxes. If no one is paying the taxes, start paying them. Additionally, your parents should hire an attorney with successful experience in adverse possession cases. There are far easier pursuits than attempting to gain ownership via adverse possession of a vacant tract that appears to be abandoned, but under the right circumstances it can be done.
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| Dear George: I have some structural problems with my house, which I've owned for 10 years. I just found out from my neighbors that the house was hit by a tornado before I bought it. This fact was never disclosed to me. Can I go after the previous owner?s
Answer: You may have a problem proving that the seller did not disclose a tornado hitting your property. In addition, you appear to be blaming your home's "structural" problems on your neighbor's recollection. The requirement that the seller of Texas residential property complete a disclosure notice, Texas Property Code Section 5.008, doesn't contain a limitation period; a two-year statute of limitations probably applies. Before you pursue any action, you need to answer several questions:
- Was the property repaired?
- Did you have it inspected?
- Is the alleged defect due to the tornado?
- Was it over two years ago when you should have discovered the defect?
- Was the neighbor telling the truth?
You'll have a difficult time proving the seller's wrongdoing. Hire an attorney who has experience with this type of case.
Dear George: I bought a piece of property with my brother and sister about 10 years ago. We're going to sell it, but I found out through a title search that there are liens on the property associated with my brother's bail bonding company. Will my and my sister's interest in the property be subject to forfeiture at closing?
Answer: Generally, liens against a property have to be paid-off at closing provided there are enough proceeds from the sale to satisfy the lienholder. In addition, there could be issues if the property is a homestead as well as the statute of limitations on the lien. There are two ways you and the other co-owners could hold title to the property: tenants in common or joint tenancy with right of survivorship. There are advantages and disadvantages to each. Also, are any of you married? If so, there may be some community-property issues. Hire a competent attorney to address your specific situation. |
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