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Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 40020
Experience:  Texas Attorney for 30 years dealing in real estate
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I bid on a property online at the miami dade court auction

Customer Question

Hi I bid on a property online at the miami dade court auction online. I won the bid and I paid down a 5% down payment. I will be paying tomorrow in full. Homeowners Association took out a judgement against the owners for HOA fees. However, the owners also have a mortgage on the property for 20 years. On the mls report under distressed information, it states document type: order of dismissal/cancellation/release of lis pendens dated 2008. Does that mean the bank dropped off the debt owing to them by the owner? Does that mean when I get a certificate of title from the courts, is it free and clear of encumbrances such as the mortgage debt?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. Ray here to help you today.

The lis pendens would have meant there was a civil suit involving the owner and they put the public on notice that there was litigation involving the property.Since it was dropped here presumably the suit was as well and thats a moot issue.

Any certificate of title is not free of debts, you buy these things as they are with any liens or encroachments, etc attached to it.You are only accounting for the amount of taxes, you get the property with prior mortgages and problems intact so it is buyer beware.You might consider a title company run sheet on any property you are bidding on to know exactly what liens are on it and any other problems that exist, encroachments, easements, etc.

You may need to file a suit to quiet title if these liens remain to try and clear them and get a clear marketable title.Factor that into any property you purchase this way, you don't get say a warranty deed like a regular purchase they come with their warts as well.

I appreciate the chance to help you today.Thanks again.

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