Do I have a case? Buys brother out of inherited property, stuck with his judgement (NC/USA)

[quincy]

Thank you! Obviously Im going to reach out to an attorney, but in your opinion, I have a case right? Im still trying to find the paperwork we all signed to move the deed in my name, could it be tossed out because of that? I just dont want to waste more time and more money only to lose because of that.

I honestly don't know if you have a case worth pursuing, MisguidedGeek. I can't see any reason why you can't sue your brother to recover the costs of "his" liens that were placed on the property, though.

You might want to contact an attorney in North Carolina for a review.

 

[Litigator22]

. . . I can see no reason that would prevent you from suing your brother . . .

Pardon me for asking, but what lawsuit; on what grounds?

How can you justify your responses, which can reasonably be taken as encouraging such a course of action (and obviously has had that very effect) without having any more knowledge of the transaction other than ". . . the deed was transferred in my name" [sic]?

If the sale was evidenced by a mere quitclaim deed (as often routine between co-owners) the OP bought a pig in a poke and he has no legal recourse.

If the brother made and delivered a form of deed by which he warranted merchantable title, one would need to know the laws of the particular state before confidently addressing the area of damages for breach of warranty of title. Damages that could be limited to restitution of the purchase price and a deed back.

 

[quincy]

I can easily justify my response because I still can't see a reason why he can't sue his brother based on what has been said.

Would more information change that? Possibly.

But that is exactly why I suggested MisguidedGeek see an attorney in North Carolina for a review ... and MisguidedGeek responded that "obviously" he was going to see one.

 

[Taxing Matters]

I honestly don't know if you have a case worth pursuing, MisguidedGeek. I can't see any reason why you can't sue your brother to recover the costs of "his" liens that were placed on the property, though.

I don't see any basis for the lawsuit, so I'm curious what possible claim you have in mind. What are your thoughts on that?

The liens were public record. That gave him/her constructive notice of the liens. The OP could have (and should have) checked the lien records before buying. Everyone should do that before any purchase of land. I'd tell a client to do that if he/she was purchasing it from the client's mother, best friend, or the Pope. Part of the reason for that is that even if you trust the seller, the seller might not actually know what liens are there.

Here the brother had a lien from a criminal case, very likely an order of restitution. Presumably the OP knew his brother had a criminal past; if so that should have made him/her that much more careful. And he evidently sold it to the OP for $7,500 less than fair market value (FMV), a discount of 75%. That too should have caught the OPs eye and prompted some investigation.

The brother certainly engaged in sharp practice but I see no evidence from what has been said so far of a "con", a fraud, or anything else illegal that might form the basis for a lawsuit. He just didn't disclose the liens to the OP even though he evidently knew of them. That's a pretty underhanded thing to do to your brother, but not illegal.

When I was a IRS officer I filed a lot of notices of federal tax lien (NFTL) and seized quite a few pieces of property to collect federal tax. I saw situations not unlike this one (most not involving relatives) come up regularly. One case did involve brothers. The taxpayer owned an apartment building and was also in the real estate business. He ended up in great financial distress during one of the real estate market collapses and the creditors were circling around like vultures. One of the creditors was the IRS. In an effort to save the apartment building, he transferred it to his brother and his brother took over managing it, collecting the rents, and upgrading it. But I had filed the notice of lien prior to the transfer, something the taxpayer's brother was evidently not told because he seemed quite surprised and angry at his brother when I told them I was seizing the property to sell for the tax liability. The brother lost all that he had put into it, so his anger was understandable. However, he had no legal claim against his brother for it. The NFTL was recorded prior to when he took the property; if he had just looked he'd have seen it there. That constructive notice defeated any claim he otherwise might have had for failing to disclose or concealing the information. While that was in a different state, I think it unlikely the OP would fare any better just on the information we have.

But that is exactly why I suggested MisguidedGeek see an attorney in North Carolina for a review ... and MisguidedGeek responded that "obviously" he was going to see one.

I wholeheartedly agree with that.

 

[quincy]

Your post was not easy to read, TM.

I recommend MisguidedGeek seek assistance in North Carolina to see if he has a claim to pursue against his brother.

Edit to add: Ahh. You fixed the bad quoting. Thanks.