QUESTION
If the title search reveals that there is a lien on my property, can I sue the person who sold it to me?
Asked on Nov 09th, 2012 on Foreclosures - Michigan
More details to this question:
I purchased a home on approximately two acres in April 2007. The previous owner was a CPA and had obtained the house through foreclosure or it was somehow given to him as payment of a debt. I did not purchase title insurance. I gave the seller cash for the property and he gave me a quitclaim deed. I am looking into selling the property and was asked to do a title search to make sure there are no liens. I did speak to the previous owner and he told me that he had a title search done and there were no liens but I never thought to ask for documentation or proof that this was done. I am having a title search done currently to make sure whether or not there are any liens. My deed does state that I had purchased it "as is," does that make any difference?
1 ANSWER
Construction Attorney serving Bloomfield Hills, MI
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Law Offices of Jeffrey Z. Dworin
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A quitclaim deed gives you only the interest the grantor had. If there was a lien on the property when you purchased it, you purchased it subject to the lien. You have no claim against the seller. You should have required title insurance or at least check title at the courthouse when you bought it. However, check the type of lien before you get too upset. For example, a construction lien is meaningless if it is not foreclosed on within one year. Many people also file illegitimate liens that have no effect but may take some effort to remove. If the lien is for a significant amount, consult with an attorney.
Answered on Nov 12th, 2012 at 11:09 PM