Real Estate sale & Child Support

[justmom611]

What is the name of your state?What is the name of your state?What is the name of your state? California

My ex husband currently owes child support arrears of over $40,000.00. In 1998, he owned a home free & clear and sold it. He wasn't paying his child support at this time either. When I found out that the property sold, I called the DCSS and asked why nothing was withheld from the sale of the property. I was told that they didn't have a lien on the property at that time, so nothing was withheld and paid to us. The caseworker mentioned at the time that the property had been deeded to someone else rather than just being sold. Just recently, I found that my ex gave power of attorney to his mother and it was actually she who sold the property. I looked at the records and there is a power of attorney recorded and then other items with the names of the buyers of the property. I know that it's far too late to do anything about it now but I am very curious. I have no clue as to how this works. Would this mean that my ex's mother would have sold the property and received payment for it? Does anyone know anything about how this works?

Thanks,

jm

[nextwife]

The Power of Attorney is merely a legal authorization that allowed mom, acting as the Attorney in Fact, to physically sign, in behalf and in place of the seller, any documents authorized under the POA. The proceeds still would have gone to the party in title at the time of the sale. I have acted as POA on many transactions, but I am not the one who gets the money from the sale, the actual seller is.

[justmom611]

Thanks for clarifying this.

[45Frank]

I would check with the local tax office or whoever files realestate deeds in your county. In NJ I worked for a nursing home, lots of POA's. If there is an attorney involved they make you get a bond (some states also require this)for the amount of the estate.

When the transaction is filed they ask if anyone recieving money owes child support or if there is any outstanding debts known of. You must sign a form stating no one owes over $1,000.00. If this is the case in your county he recieved the money and mom or the attorney didn't do their research and you may have a claim against the bonding company or his mom.

Just a thought.

Originally Posted by nextwife

The Power of Attorney is merely a legal authorization that allowed mom, acting as the Attorney in Fact, to physically sign, in behalf and in place of the seller, any documents authorized under the POA. The proceeds still would have gone to the party in title at the time of the sale. I have acted as POA on many transactions, but I am not the one who gets the money from the sale, the actual seller is.

[nextwife]

Originally Posted by 45Frank

I would check with the local tax office or whoever files realestate deeds in your county. In NJ I worked for a nursing home, lots of POA's. If there is an attorney involved they make you get a bond (some states also require this)for the amount of the estate.

When the transaction is filed they ask if anyone recieving money owes child support or if there is any outstanding debts known of. You must sign a form stating no one owes over $1,000.00. If this is the case in your county he recieved the money and mom or the attorney didn't do their research and you may have a claim against the bonding company or his mom.

Just a thought.

She said he sold it in 1998! CSE stated that no lien was of record.

[justmom611]

Originally Posted by 45Frank

I would check with the local tax office or whoever files realestate deeds in your county. In NJ I worked for a nursing home, lots of POA's. If there is an attorney involved they make you get a bond (some states also require this)for the amount of the estate.

When the transaction is filed they ask if anyone recieving money owes child support or if there is any outstanding debts known of. You must sign a form stating no one owes over $1,000.00. If this is the case in your county he recieved the money and mom or the attorney didn't do their research and you may have a claim against the bonding company or his mom.

Just a thought.

Hmmm...his mom knew that he owed back child support. In fact, she told me that he promised to pay his support when he sold his house and did not. Thanks for the info.

[45Frank]

I am sorry I didn't realize the sale was that long ago. There may be S/L
There doesn't have to be a lien on the property. You must do some legwork making sure there isn't anything owned. You sign stating there are no back CS over $1,000.00. I had a relative go thru something simular just reciently.

Originally Posted by nextwife

CSE stated that no lien was of record.

[nextwife]

You are referencing NJ law. This is CA. It is NOT the case that a "declaration of no debts over $1000" must be done in all RODs offices throughout the country. Frankly, I have arranged closings in MANY states, and NONE I came across had any such declaration required before recording a deed. I do real estate recordings in many counties, and have NEVER had a RODs office request any such declaration.

Now, a TITLE insurance company utilizes something called an Owner's Affidavit, in which the selling party attests that certain LIENABLE obligations, DOCKETED judgements, and Parties in Possession which are not dealt with on the closing statement exist or not. Are you sure you are not thinking of a n Owners Affidavit? But the affidavit is ONLY dealing with lienable obligations that can cloud the PURCHASER's title. A creditor who has NO lien against the RE (an example would be a credit card debt, easilly over $1000), who is not a contractor or materialman supplying goods and services and filing within six months of the last date work on the premises occured, cannot use that affidavit to make a claim against the title company because the title company is ONLY obligated to search and disclose matters that in no way impact the TITLE to the RE.

[45Frank]

I will findout what the form is in NJ. I know the one came from the Surrogates office when the estate papers were filed, It was specifically for Child Support right across the top. The other was before a closing where he had POA, this was thru the county office, don't know if that one was specifically for CS or not. But I remember him and my aunt telling me the attorney charged them to make sure there was no C/S owed by anyone involved. I think it's a darned good idea myself.
I was just suggesting to see if CA. had such laws. Also the ins. he had to get was a Bond worth at least what the estate was worth.
I'll get back to you.

Originally Posted by nextwife

You are referencing NJ law. This is CA. It is NOT the case that a "declaration of no debts over $1000" must be done in all RODs offices throughout the country. Frankly, I have arranged closings in MANY states, and NONE I came across had any such declaration required before recording a deed. I do real estate recordings in many counties, and have NEVER had a RODs office request any such declaration.

Now, a TITLE insurance company utilizes something called an Owner's Affidavit, in which the selling party attests that certain LIENABLE obligations, DOCKETED judgements, and Parties in Possession which are not dealt with on the closing statement exist or not. Are you sure you are not thinking of a n Owners Affidavit? But the affidavit is ONLY dealing with lienable obligations that can cloud the PURCHASER's title. A creditor who has NO lien against the RE (an example would be a credit card debt, easilly over $1000), who is not a contractor or materialman supplying goods and services and filing within six months of the last date work on the premises occured, cannot use that affidavit to make a claim against the title company because the title company is ONLY obligated to search and disclose matters that in no way impact the TITLE to the RE.