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  1. #1
    Join Date
    Jun 2012
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    Angry Allegation of Forgery by Seller on a Warranty Deed

    My question involves real estate located in the State of:texas

    Years ago a friend purchased a property from a seller with a warranty deed. recently a third party that used to live on the property contacted my friend through an attorney claiming seller forged her name on deed several years prior and to squash suppsed accusations of forgery the seller deeded property back to 3rd party long before seller conveyed property to my friend. the seller used an attorney from a title surity company to draw up warranty deed to be conveyed to my friend, and then my friend had to immediatly sign a deed of trust WITH WARRANTY to title surity lawyer that acted as trustee for seller. after all payments were made, the trustee deeded property back to my friend with NO warranty. (at no time was any title reasearch done by title surity lawyer or my friend) my friend had deed recorded at clerks office. it was previously recorded under sellers name not third party. now the 3rd party lawyer sent a special warranty deed to my friend to convey property back to 3rd party to settle the matter and advised my friend to seek legal councel. can my friend be in any trouble legally? the only issue i can see is that my friend signed the deed of trust WITH WARRANTY to the trustee (title surity lawyer) long ago at purchase. seems like something really shady going on.

  2. #2
    Join Date
    Sep 2005
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    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    Quite possibly. Tell you friend to get all the documentation from the sale and all of the relevant title work together, and have it reviewed by a real estate lawyer.

  3. #3
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    Jun 2012
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    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    #1 it seems to me that if the third parties allegations of forgery are true that would make sellers warranty deed worthless to begin with as well as any other subsequent deeds for this property, and the 3rd party lawyer would not need my friend to sign a special warranty deed back to 3rd party. (or does the 3rd party lawyer need this signed special warranty deed back from my friend to change county clerks records back to 3rd parties name?) #2 does the fact that my friend signed a warrantied deed of trust to title surity company lawyer right after signing sellers warranty deed make her liable for any damages and leave seller and his trustee no longer liable for the warranty????
    Texas real estate law is so confusing, it's like stuck in the 1800's!

  4. #4
    Join Date
    Jan 2006
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    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    a warranty deed is never worthless. A warranty deed is a promise that the grantor claims to have clear title to the property involved and will defend the claim if challenged. So, the grantor can either admit to fraud or defend their claim to title. Since no title insurance was purchased, all grantors using warranty deeds better check their bank balances.

    a warranty deed is forever.

    and your friend appears to be either very ignorant or complicit in the fraud.


    from http://www.expertlaw.com/library/rea...xas-deeds.html



    When a person signs a Quitclaim Deed, he is essentially saying, "I don't promise that I own any interest in this land, but if I do I surrender it." Compare this to language in a Warranty Deed, where the seller "grants, sells and conveys the property to the buyer ... to have and to hold it ... forever, and binds seller and seller's heirs to warrant and forever defend the property to the buyer."
    edit to add:

    I jsut realized you said your friend used a special warranty deed to transfer title to the trust. That makes him safe. A special warranty deed does not warrant the title prior to the grantors ownership but only the condition of title created while owning the property.

  5. #5
    Join Date
    Jun 2012
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    7

    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    Unfortunately my friend IS ignorant of the documents she signed. I feel that if she had a competent person or legal representation with her at time of signing there would have been title research performed and wording changed on deed of trust to sellers attorney to make no warranty to title for obvious reasons. What a mess!

  6. #6
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    Jan 2006
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    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    Quote Quoting sloshnmosh
    View Post
    What a mess!
    yes, it is.

    She needs to do as Mr. K suggested. This is beyond a self help issue, especially considering how she got into this.

  7. #7
    Join Date
    Jun 2012
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    7

    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    no, she signed the deed of trust WITH WARRANTY, (It was drawn up by the same title surity company, the sellers attorney works or is part owner of the title surity company where all the signing took place.) It was the 3rd parties lawyer that ust recently sent my friend a SPECIAL warranty deed to convey property back to 3rd party to end the matter. She has not signed it as of yet.

  8. #8
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    Jan 2006
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    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    My mistake. Your posts are quite confusing. I see that the 3rd party has sent a special warranty deed to your friend. I misread one post and thought you were saying she signed a special warranty deed.


    Sounds like she really needs that lawyer now. Either that or simply give up the property and sign it over to that 3rd party. Even then I would suggest speaking with a lawyer to ensure she is not liable for anything else due to this transaction.

  9. #9
    Join Date
    Jun 2012
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    7

    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    I agree JK...It just blows my mind that these warranties (or lack there of) can perpetuate a situation over and over again if the grantor is able to find a grantee gullable enough (such as my friend) to sign to a trustee a warranty and then deed back after transaction without warranty...it could go on forever and each grantee would then have to file suit against the previous grantor that warrantied until a competent real estate attorney finally puts the thing to rest. You are correct..this is WAY too ugly for a self help forum! (My brain hurts)

  10. #10
    Join Date
    Jan 2006
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    Default Re: Allegation of Forgery by Seller on a Warranty Deed

    you included the perfect term: gullible

    while so many people despise, or at least have a problem with, lawyers, this is the kind of problem you can get into if you refuse to utilize them.

    You do realize that your friend has a claim against the person that issued the warranty deed to her, correct? It would appear that person is quite likely guilty of fraud since he was aware he had already delivered a deed to the 3rd party.

    Curious: did the attorney who originally handle this suggest your friend have a title search done? After all he was working for a title insurance company. It would have been the logical suggestion.

    Of course, there is another possibility:

    the 3rd party doesn't actually have a claim to the property. You did say their deed was not registered at the time your friends deed was registered, correct?

    13.001. VALIDITY OF UNRECORDED INSTRUMENT. (a) A conveyance of real property or an interest in real property or a mortgage or deed of trust is void as to a creditor or to a subsequent purchaser for a valuable consideration without notice unless the instrument has been acknowledged, sworn to, or proved and filed for record as required by law. (b) The unrecorded instrument is binding on a party to the instrument, on the party's heirs, and on a subsequent purchaser who does not pay a valuable consideration or who has notice of the instrument. (c) This section does not apply to a financing statement, a security agreement filed as a financing statement, or a continuation statement filed for record under the Business &Commerce Code.Acts 1983, 68th Leg., p. 3495, ch. 576, 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 162, 4, eff. Sept. 1, 1989.
    if so, your friend my have gotten lucky. Since she paid money for the property, the unrecorded deed may not be valid for a claim against your friend.

    again, she really needs a lawyer. Tell her to not sign anything until she speaks with one who can review all of the information and give her some advice.

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