Is this deal too good to be true?
Q: I received a letter from someone offering to sell me the lot next door to my house for a good price. They want to just deed the property over, they say they have good title and that title insurance isn’t needed. They plan to give me a “special warranty deed,” so if there is a problem, am I covered?
A: Remember that old adage – “if it sounds too good to be true, it likely is.” The fact that someone contacted you to purchase this lot isn’t necessarily nefarious – sellers recognize that the owner of a lot or house next door to vacant land may pay more than actual market value for it. However, just “deeding” the property to you may be problematic. How do you know if this seller has clear title to the property? The “seller” may have no ownership in the property whatsoever. What if he does own the property, but it has thousands of dollars of liens on it? They won’t disappear simply because he deeded the property to you. A title search through a law firm or title company, at a minimum, should be done to determine exactly who owns the property, and what must be done to provide clear title to you.
If you purchased this property and later discovered you don’t have clear title, you may have a cause of action against the seller. However, since he is providing you a “special warranty deed,” he is not providing a warranty that he has good title. He is only stating that, from the time he acquired his interest in the property, nothing has occurred to impair his title. This deed will not warrant against defects that occurred prior to his acquisition, however.
Purchase of property is a significant investment where the involvement of professionals can protect your hard earned money from a costly mistake. To end on another old adage, “Trust, but Verify.”
Eric P. Feichthaler has lived in Cape Coral for 27 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through his chairmanship of the Harney Point Kiwanis Club KidsFest, which provides a free day of fun and learning to thousands of Cape Coral families, and funds numerous scholarships. He has been married to his wife, Mary, for 13 years, and they have four children together. Recently, he earned his board certification in Real Estate Law from the Florida Bar. He is also a Supreme Court Certified Circuit Civil Mediator.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.