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William B. Esq.
William B. Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 3000
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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I live in california. Two years ago, I recieved a grant deed

Resolved Question:

I live in california. Two years ago, I recieved a grant deed for a 5-unit apartment with loan "subject to" after paying for the mortgage payments which were a few months behind from a church member. She was in a financial hardship, so she couldn't pay the mortgage payments, and she was going to get NOT after one month. A tenant was not paying for rent, and she did not have money to hire an attorney to evict the tenant. she told me that she wants to transfer the property if I pay for the attorney fee and the unpaid mortgage payments so she can be free from all the headaches. So I did. For two years, I paid mortgage and taxes and everything like the usual owners. I have been waiting for the apartment to appreciate until I can sell the property. Finally I found a buyer who can pay me enough money to cover the costs incurred so far and some profit. Escrow is closing next week or so. But when the escrow sent the application to pay off the loan, the bank requested the borrower(the previous owner) to sign the form. But she is refusing to sign and asking to give the property back to her, and she is lying to other people saying that she asked me to hold the property for some time and give it back, but I am selling it without her permission. This is a lie. If she keeps refusing to sign, and the escrow can not close, what legal action can I take?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  William B. Esq. replied 1 year ago.

William B. Esq. :

Dear Customer, thank you for choosing Just Answer. My name isXXXXX would like to assist you today.

William B. Esq. :

In reviewing your post, it appears that you had an oral agreement to purchase real property from the prior owner, and after making payments for two years, the seller is denying that you had a contract. Is that correct?

Customer:

Yes, but she transfered the title. she signed the grant deed.

William B. Esq. :

Was the grant deed recorded with the County Recorder's office?

Customer:

Yes

William B. Esq. :

Was the deed a "warranty deed" or a "quit claim" deed?

Customer:

grant deed. I don't understand the difference bet warranty and grant deed.

William B. Esq. :

A warranty deed is where the person giving you the deed "warrants" the property against all claims against the property, while a "quit claim" deed does not (the first one gives the buyer more protection).

Customer:

It just says "grant deed"

William B. Esq. :

If I understand the situation correctly, the seller is personally responsible for the mortgage, she no longer owns the property, but is now refusing to sign the mortgage papers to payoff the loan amount. While there is no easy way to "force her" to do this, if she does not sign the document in a timely manner, you could sue her for breach of contract. As part of the breach of contract damages, you could claim the amount due to the lost sale (or lost opportunity), as well as any other costs arising from her failure to pay (such as your ongoing obligation to pay the loan until it is sold).

Customer:

even if there is no written contract except the grant deed?

William B. Esq. :

The grant deed memorializes the contract. Here is the exact statute on the "statute of frauds" for sale of real property: http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1619-1633 (see Section 1624, a memorandum of the transaction exists).

Customer:

ok. Thank you very much for your answer.

William B. Esq. :

You are welcome, I wish that I had an easier resolution to your situation, but I do hope that it resolves itself quickly.

Customer:

Thank you again. bye.

William B. Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 3000
Experience: I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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