Affidavit recorded 1hr before I recorded deed - Posted by Lenny Aus/Tex

Real Estate Investing
#1

Posted by Lenny on December 26, 1998 at 09:07:39:

“I did title search and all was clear at time
of recording (so it seemed)…)”

Recording of what? You said you had a contract. If you did a title search at the time you recorded, then you
would have found the affidavit. I’m not clear on your
chain of events here.
""“At the court house, there was no record of affidavit because of the lapse from when someone hands over doc to be recorded.”""

1/3rd down–to whom? Apparently not an escrow company or a title company–someone please comment on this!!
""“1/3 to seller.”""

“I wrote in contingency
clause that if title was not perfectly clear then my balance owed would not
be owed until title was cleared”

…Doesn’t that tie you up?–it doesn’t get you your 1/3 down back–it keeps that money in the deal ( if in fact there is one) indefinitely, or at least you are not in control of the time frame. Sounds like you didn’t want out of the deal or that the phrase
"until the title is cleared" is designed to keep you in.
""“I was buying house at 50% or below FMV…of course I didnot want out of the transaction. I have the deed”""

Is this something that has some advantage? I’m not familiar with it. I’m just asking others to comment.
What advantage would there be for you?

I’m just trying to learn here. My thoughts are that one would have benefittted from a title company doing
the title search and from title insurance.
""“No time for title company. This seller needed cash NOW. I met her at the court house to hammer out terms,write them up, hand her the cashiers check (I brought lump of cash and various denominations of cashiers checks), get the deed and record it.”""

“”“Does’nt the fact that I have the deed put me in control?..the seller is the one who broke the contract with the other buyer. I do not have a clean title, but I have a house worth 70k for 10k that will bring in 800 month rent. I think (hope) that the seller has the problem.”"

#2

Affidavit recorded 1hr before I recorded deed - Posted by Lenny Aus/Tex

Posted by Lenny Aus/Tex on December 23, 1998 at 23:33:49:

I bought a house (just me,seller,notary,purchase contract and warranty deed)at 50% FMV, 1/3 down, balance in 30 days. I wrote in contingency clause that if title was not perfectly clear then my balance owed would not be owed until title was cleared. (I did title search and all was clear at time of recording (so it seemed)…)

Seller had signed contract for sale to another party the day before, and that buyer recorded affidavit 1 hour before my deed!

Does anybody know any way I can lose my title to property???

Any ideas on my situation???

I expect the “other” buyer to look to file suit against seller.

I suppose I also could communicate my ability to bring suit against seller (to motivate her to settle with the other buyer)

Could there be any other senarios that could adversly affect me??

Thanks for any input,

Lenny

#3

Re: Affidavit recorded 1hr before I recorded deed - Posted by MilNC

Posted by MilNC on December 24, 1998 at 14:36:44:

“I did title search and all was clear at time
of recording (so it seemed)…)”

Recording of what? You said you had a contract. If you did a title search at the time you recorded, then you
would have found the affidavit. I’m not clear on your
chain of events here.

1/3rd down–to whom? Apparently not an escrow company or a title company–someone please comment on this!!

“I wrote in contingency
clause that if title was not perfectly clear then my balance owed would not
be owed until title was cleared”

…Doesn’t that tie you up?–it doesn’t get you your 1/3 down back–it keeps that money in the deal ( if in fact there is one) indefinitely, or at least you are not in control of the time frame. Sounds like you didn’t want out of the deal or that the phrase
"until the title is cleared" is designed to keep you in.

Is this something that has some advantage? I’m not familiar with it. I’m just asking others to comment.
What advantage would there be for you?

I’m just trying to learn here. My thoughts are that one would have benefittted from a title company doing
the title search and from title insurance.

#4

Re: Affidavit recorded 1hr before I recorded deed - Posted by Rob FL

Posted by Rob FL on December 24, 1998 at 13:56:52:

I would immediately contact the seller and the person who filed the affidavit and try to work out some kind of deal. If that doesn’t work for some reason, I would tell the seller that unless he gives you all your money back plus costs that you will be contacting the district attorney’s office to have him criminally prosecuted for fraud and pulling a scam on you. The thought of jail time might change his heart very quickly. At least you might be able to get your money back.

#5

Question? - Posted by David Alexander

Posted by David Alexander on December 24, 1998 at 12:12:00:

What was the other person going to buy the house for?
Since, you now have the deed could you sell the house to them and quickly get yourself out of a sticky situation.

Bud, so, even if you have a deed and someone records a contract like this situation, the recording is what takes precedence, even if it’s just a contract to buy,
not the deed itself. Wow.

David Alexander

#6

Re: Affidavit recorded 1hr before I recorded deed - Posted by Bud Branstetter

Posted by Bud Branstetter on December 24, 1998 at 08:31:31:

In Texas the first one to record wins. You now have what is called a title defect. Since the other party had a contract first you are subject to suit because you interferred with that contract. Until the dispute is settled amongst all it is up to you how you want to proceed. A visit to your attorney is definately in order.