Paid Taxes On Property I Didn't Legally Own

Michigan

I have a situation in which I was quit claim deeded a property for a very small amount of money. Here 's why: it is two lots, lots D and E. Lot D has a house on it. I was deeded both lots but a title search shows that I only was conveyed lot D and that lot E is out of the chain of title . The city has been taxing both lots together and the taxes were paid by the previous owner for the last 15 years. Part of the house is on lot E. What do you think would happen if went to court and explained this to a judge. The city is behind the times and really can't explain why they were taxing the wrong owner.

Have you talked to whoever provided title insurance and/or did the closing to see why lot E was not recorded in your name?

efflandt said:

Have you talked to whoever provided title insurance and/or did the closing to see why lot E was not recorded in your name?

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No title insurance was provided. Was just a quit claim deed transfer.

dosprompt said:

No title insurance was provided. Was just a quit claim deed transfer.

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So if you didn't have title insurance, how can you even KNOW that the Grantor even had SOLE good title to deed to you? And that there may not potentially be another party with a partial interest, lien or judgemnt ?

As to the other lot, have you returned to the Grantor and ASKED about having them deed the additional parcel to you?

They were on Ebay (still are) and have a good rating, I trusted the rating. Turns out that lot D with the house is ok says the title insurance company. it's the other lot (the back of the house). Stupid thing to do to trust someone (a LLC) selling houses on EBAY. At thing point I admit I was dumb and stupid, but now I just want to get it fixed. This was advertised as a house and the two lots, but a quit claim transfer. Wondering if I could take them to court for selling real estate that they didn't really own. Only part of it. Of course they won't do anything.

I think I could get the lot via adverse possession law but it's not worth the court cost. Anybody have any ideas?

Their are no liens or judgments.

The thing that got was this house was owned by Coseco Finance and I was thinking that there was no way there would be a title problem. Former owner defaulted on a home equity loan and Conseco got the house but never sold it via title insurance.

Never buy a house quit claim deed with out a title search even from your mother.

If I advertised I owned my neightbors house on Ebay (and I didn't) and made represented that I did and stated that I could only transfer quit claim deed. In other words, I lied to get money, the person believed me and gave the the money. What do you think the local court would do if the person that gave me the money took me to court and said I lied about owning the house?

It seems that for some reason, your thread has wandered off into the 'netherland' of 'what if' and 'maybe coulda'. That happens sometimes when responders get confused and try to guess things that they don't know.
So, with that, lets bring your thread BACK to where it started..... and answer your question(s)!!

dosprompt said:

What do you think would happen if went to court and explained this to a judge.

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Nothing. Your only 'standing' is since you purchased the property (quit claim) and have no claim by the previous owners overpayment of taxes. Simply contact the taxing authority and ask them to review so that you only pay taxes on YOUR property.

JETX said:

It seems that for some reason, your thread has wandered off into the 'netherland' of 'what if' and 'maybe coulda'. That happens sometimes when responders get confused and try to guess things that they don't know.
So, with that, lets bring your thread BACK to where it started..... and answer your question(s)!!


Nothing. Your only 'standing' is since you purchased the property (quit claim) and have no claim by the previous owners overpayment of taxes. Simply contact the taxing authority and ask them to review so that you only pay taxes on YOUR property.

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I did that, they said they cannot break the lots up because the house is on both lots. They said they went out and measured the lots and a little of the house is on lot E.

dosprompt said:

I did that, they said they cannot break the lots up because the house is on both lots. They say a little of the house is on lot E.

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First, they are full of BS. It (split property) is done all the time. I have had clients who had property that straddled COUNTY lines, falling into two separate taxing authority's. And yes, the county line actually splits the house(s). Each taxing authority has to determine what percentage of the house/property sits in each county and tax accordingly. Not simple to do... but something that can be done.

So, lets look at the 'big picture' here.... WHO is the owner of lot E??
If you are the owner, then you pay the taxes on lot D and E.
If someone else is the owner, then THEY pay the taxes on lot E, and you on lot D.

Sounds to me like whoever owns lot E has an enfringement case against the owner of the house and lot D.

So, the first thing YOU need to do is get a survey done... showing BOTH lots and where the house is placed on the lots.
After the survey, you are going to need to talk with a GOOD local real property attorney to get the ownership issues straightened out on the two lots.
After ownership is resolved, you can tackle the tax issue.

Gee, that cheap deal may not be so cheap after all, huh??

JETX said:

Okay, then... WHO is the owner of lot E??
If you are the owner, then you pay the taxes on lot E.
If someone else is the owner, then THEY pay the taxes on lot E.

Sounds to me like whoever owns lot E has an enfringement case against the owner of the house and lot D.

So, the first thing YOU need to do is get a survey done... showing BOTH lots and where the house is placed on the lots.
After the survey, you are going to need to talk with a GOOD local real property attorney to get the ownership issues straightened out on the two lots.
After ownership is resolved, you can tackle the tax issue.

Gee, that cheap deal may not be so cheap after all, huh??

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It was stupid, but I just want to get it fixed. It's not worth an attorney, house and property only worth 15,000.
I'm just glad my stock holdings increase enought to pay for this stupidness.

JETX said:

First, they are full of BS. It (split property) is done all the time. I have had clients who had property that straddled COUNTY lines, falling into two separate taxing authority's. And yes, the county line actually splits the house(s). Each taxing authority has to determine what percentage of the house/property sits in each county and tax accordingly. Not simple to do... but something that can be done.

So, lets look at the 'big picture' here.... WHO is the owner of lot E??
If you are the owner, then you pay the taxes on lot D and E.
If someone else is the owner, then THEY pay the taxes on lot E, and you on lot D.

Sounds to me like whoever owns lot E has an enfringement case against the owner of the house and lot D.

So, the first thing YOU need to do is get a survey done... showing BOTH lots and where the house is placed on the lots.
After the survey, you are going to need to talk with a GOOD local real property attorney to get the ownership issues straightened out on the two lots.
After ownership is resolved, you can tackle the tax issue.

Gee, that cheap deal may not be so cheap after all, huh??

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Owner of lot E used to own lot D but deeded lot D to son and wife. Wife filed for divorce, court gave house to wife. Wife owned the house, got a home equity loan with the Conseco Finance, defaulted on the loan. Conseco went to court to enfored the lein, they won but didn't sell the house but ended up deeded it to a LLC.

dosprompt said:

Owner of lot E used to own lot D but deeded lot D to son and wife. Wife filed for divorce, court gave house to wife. Wife owned the house, got a home equity loan with the Conseco Finance, defaulted on the loan. Conseco went to court to enfored the lein, they won but didn't sell the house but ended up deeded it to a LLC.

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From my previous post:
"So, the first thing YOU need to do is get a survey done... showing BOTH lots and where the house is placed on the lots.
After the survey, you are going to need to talk with a GOOD local real property attorney to get the ownership issues straightened out on the two lots.
After ownership is resolved, you can tackle the tax issue."

JETX said:

From my previous post:
"So, the first thing YOU need to do is get a survey done... showing BOTH lots and where the house is placed on the lots.
After the survey, you are going to need to talk with a GOOD local real property attorney to get the ownership issues straightened out on the two lots.
After ownership is resolved, you can tackle the tax issue."

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It's not worth what an attorney would charge. I going to try and see if I can get the owner to sell me the property, buy if they don't sell......well then, that's why I'm asking here. Even with an attorney, there're no guarentee that you'll win in court. And for sure, you'll end up with a big legal bill.