deeds error

[olivia2012]

What is the name of your state (only U.S. law)? North Carolina
Hi, I have a question about home deeds problem. I bought my home directcy from the builder and also get home loan from the builder. So everything (deeds, title insurance, the closing attorney,etc) during the closing were provided by the builder. Now I am selling my home but found out there is error in the deeds. They had an old floor map but when they built the home they made the changes. However the deeds was still based on the old map. Right now I have to correct the deeds in order to sell my home. The title insurance company is doing the corrtction for me. But my initial closing date of my home selling was July 28th,2015. Looks like there is another one or two months before this can be resolved. So I am wondering who should be reponsible for those additional costs assocriated with closing delay (such as mortgage)? I have made some phone calls and learn the title insurance policy won't cover it, the attorney who made error on the deeds is retired so who I should speak to under this situation?

 

[adjusterjack]

who I should speak to under this situation?

A lawyer.

But, realistically, unless you want to spend many thousands to litigate for a lot more than just a month or two, best to ride it out until it's fixed and you can get your house sold.

If, by mortgage, you mean you have to keep paying your mortgage until the sale, that's not compensable anyway.

 

[Zigner]

If, by mortgage, you mean you have to keep paying your mortgage until the sale, that's not compensable anyway.

I agree that the OP would be wise to seek the assistance of an attorney, but I'm not so sure that the OP definitely wouldn't be able to recover the additional payments. If the OP can show that the prior attorney's error was the sole reason for the delay, then he may have a claim for the additional money he's out (the mortgage payments he wouldn't have had to have made) due to the error.

 

[STEPHAN]

Now I am selling my home but found out there is error in the deeds.

Are you under contract?

 

[Zigner]

Are you under contract?

He initially had a closing date of 7/28 and didn't mention that the buyers backed out yet.

 

[olivia2012]

Are you under contract?

Yes, I am under contract.

The original closing date is in July. So we moved out before that. But we have to pay mortgage because it can't be closed. The buyer is still sticking to the deal now. This is a hot selling community. However the closing delay may cost me 20-30% of capital gain.

 

[justalayman]

Yes, I am under contract.

The original closing date is in July. So we moved out before that. But we have to pay mortgage because it can't be closed. The buyer is still sticking to the deal now. This is a hot selling community. However the closing delay may cost me 20-30% of capital gain.

how did it cost you anything? the price is fixed so whatever gain you would realize at the time of entering the contract is still there.


I do have a question though;

They had an old floor map but when they built the home they made the changes.

what is a floor map and why is it attached to the deed and why would it alter anything here?


If you mean floor plan, it is irrelevant. They buyer is offering to buy what he sees and not what is on a floor plan. I have never seen a floor plan attached to a deed either. It gets filed with the local building department but deeds generally do not describe the home on a property other than stating there is in fact a home on the property.

but if you want out of the contract, either tell the buyer to accept it as is or tell them they can back out of the contract.

 

[STEPHAN]

how did it cost you anything?

He still has to pay his mortgage.

 

[Zigner]

He still has to pay his mortgage.

I believe that just's question referred to the OP's mention of losing "20-30% of capital gain"

 

[olivia2012]

how did it cost you anything? the price is fixed so whatever gain you would realize at the time of entering the contract is still there.


I do have a question though;

what is a floor map and why is it attached to the deed and why would it alter anything here?


If you mean floor plan, it is irrelevant. They buyer is offering to buy what he sees and not what is on a floor plan. I have never seen a floor plan attached to a deed either. It gets filed with the local building department but deeds generally do not describe the home on a property other than stating there is in fact a home on the property.

but if you want out of the contract, either tell the buyer to accept it as is or tell them they can back out of the contract.

I think I didn't describe the issue clearly. I have the letter from title insurance company pasted below.


"It has come to our attention that the legal description contained in your deed may have referred to an older map(PlatBook186Page357 hereinafter sometimes referred to as the “Old Plat”)and not the newer plat(Plat192,Page 159hereinafter sometimes referred to as the “New Plat”)recorded July25,2013. The New Plat states that“[t]he purpose of this plat is to recombine lots 75-81 so that the property lines match the party wall locations of the townhome building.” The property lines on the New Plat are slightly different than the property lines on the Old ."

So the closing attorney said the deeds must be fixed before he can prepare legal documents. The correction of deeds is covered by title insurance, but I still need to pay mortgage until the issue is solved. ( As you know, the majority of mortgage payment goes to interest which can not be recovered after home selling). The attorney who made error in the deeds is retired, so there is no practicing insurance I can claim from. I guess what I want to know is whether the builder still has the liability and this situation because the attorney was hired by them at the beginning.

 

[Zigner]

I think I didn't describe the issue clearly. I have the letter from title insurance company pasted below.


"It has come to our attention that the legal description contained in your deed may have referred to an older map(PlatBook186Page357 hereinafter sometimes referred to as the “Old Plat”)and not the newer plat(Plat192,Page 159hereinafter sometimes referred to as the “New Plat”)recorded July25,2013. The New Plat states that“[t]he purpose of this plat is to recombine lots 75-81 so that the property lines match the party wall locations of the townhome building.” The property lines on the New Plat are slightly different than the property lines on the Old ."

So the closing attorney said the deeds must be fixed before he can prepare legal documents. The correction of deeds is covered by title insurance, but I still need to pay mortgage until the issue is solved. ( As you know, the majority of mortgage payment goes to interest which can not be recovered after home selling). The attorney who made error in the deeds is retired, so there is no practicing insurance I can claim from. I guess what I want to know is whether the builder still has the liability and this situation because the attorney was hired by them at the beginning.

Because the event occurred while insurance was in force, you may be able to make a claim against that insurance.

 

[justalayman]

He still has to pay his mortgage.

That wouldn't change his capital gains.

Op said it would cost them 20-30% of capital gains. The cost is locked at time of original purchase and selling price is locked through current contract. The last I knew capital gains is the gain between cost of item versus selling price of item.

 

[justalayman]

I think I didn't describe the issue clearly. I have the letter from title insurance company pasted below.


"It has come to our attention that the legal description contained in your deed may have referred to an older map(PlatBook186Page357 hereinafter sometimes referred to as the “Old Plat”)and not the newer plat(Plat192,Page 159hereinafter sometimes referred to as the “New Plat”)recorded July25,2013. The New Plat states that“[t]he purpose of this plat is to recombine lots 75-81 so that the property lines match the party wall locations of the townhome building.” The property lines on the New Plat are slightly different than the property lines on the Old ."

So the closing attorney said the deeds must be fixed before he can prepare legal documents. The correction of deeds is covered by title insurance, but I still need to pay mortgage until the issue is solved. ( As you know, the majority of mortgage payment goes to interest which can not be recovered after home selling). The attorney who made error in the deeds is retired, so there is no practicing insurance I can claim from. I guess what I want to know is whether the builder still has the liability and this situation because the attorney was hired by them at the beginning.

Oh, plat map. That is a world of difference from a floor map, which really isn't anything


Did your lot change between the old and new maps?

And when did you purchase the lot or home with lot, whichever it was.