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  1. #11
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    Nov 2013
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    Default Re: Legal Description Deed and Sales Contract

    Quote Quoting Wjb327
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    My question involves real estate located in the State of: Georgia
    We purchased a home a few months ago. We received a tax bill for our home and the lot across the street (new construction). Apparently the deed was recorded showing us as owners of both properties. Upon further review, it is also the same on our sales contract in the legal description. It was not caught before closing or after. We reached out to the builder but he has not responded.

    Since there is a mortgage attached to it, we were told we may have to refinance in order to correct the deed. Since it was not just a clerical error, how would we correct it. The other lot is vacant and it’s the only other lot this builder has in the subdivision. We do not want to have to pay a bunch of unnecessary fees or have an issue with our mortgage later on. Technically we own it but we are not trying to be dishonest.

    Any advice?
    If someone sold me two lots for the price of one, I would say thank you. Now ask how much is the seller is willing to pay you for that lot if he wants it back?

    You have a sales contract that includes both lots. You have a recorded deed for two lots. You had a closing that included both lots. You legally own both lots!

    What's the problem? The sales contract stipulated a price (that included both lots). That sale price is what your mortgage was based on, was it not? They gave you the mortgage.

    You got the other lot for nothing.

    Let the seller go after his closing attorney for his loss and list the other lot for sale if you don't want it.

  2. #12
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    May 2019
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    5

    Default Re: Legal Description Deed and Sales Contract

    Quote Quoting budwad
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    If someone sold me two lots for the price of one, I would say thank you. Now ask how much is the seller you going to pay you for that lot if he wants it back?

    You have a sales contract that includes both lots. You have a recorded deed for two lots. You legally own both lots!

    What's the problem? The sales contract stipulated a price (that included both lots). That sale price is what your mortgage was based on, was it not? They gave you the mortgage.

    You got the other lot for nothing.
    You are right. Legally, we own the lot. The builder poured a basement on it so it’s getting more complicated as we go.

  3. #13
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    Default Re: Legal Description Deed and Sales Contract

    Then you immediately write him a letter to stop construction on your lot until this snafu is resolved. And go to the town building department and tell them to put a stop work order on the building as the builder does not own the lot. You own the lot.

  4. #14
    Join Date
    Jan 2006
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    38,536

    Default Re: Legal Description Deed and Sales Contract

    Quote Quoting Wjb327
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    You are right. Legally, we own the lot. The builder poured a basement on it so it’s getting more complicated as we go.
    Do you want the lot? If so, how much are you willing to spend to keep it?

    do you have access to any of the advertisements regarding your home ((if there are any) prior to your purchase? If so, did it mention the odd lot in any way?

    Now, while budwad seems to think you are the big lottery winner today, it’s quite the contrary if this was an actual mistake and the developer is willing to fight to get the lot back. If the seller can prove this is an error, he will likely win in court if he is willing to go that far.

    A contract requires a “meeting of the minds” and your presence here proves there was not such a consensus. In this case it appears it is mutual error, which makes reformation of the contract even more likely.

    Also, contrary to budwads statement, since the appraisal did not include the odd lot, no, your mortgage loan is not based on both lots even though it is listed in the contract. They used only your (intended) property to establish value. As I explained previously, this is a very good thing for you. It means that if/when the second lot is stripped off, your mortgage is not affected because the value of the security your mortgage is based on doesn’t change.

  5. #15
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    Nov 2013
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    Default Re: Legal Description Deed and Sales Contract

    Quote Quoting jk
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    Now, while budwad seems to think you are the big lottery winner today, it’s quite the contrary if this was an actual mistake and the developer is willing to fight to get the lot back. If the seller can prove this is an error, he will likely win in court if he is willing to go that far.

    A contract requires a “meeting of the minds” and your presence here proves there was not such a consensus. In this case it appears it is mutual error, which makes reformation of the contract even more likely. .
    Yes a meeting of the minds. That is what you posted. A sales contract is a meeting of the minds. Is it not? A closing is a meeting of the minds. Is it not? These are written instruments and not verbal contracts. A mortgage company acted on the sales contract.

    At what point does the law say that after all due diligence in a transaction of the meeting of the minds that it was a mistake? According to you, any contract could be deemed a mistake. That is not the case.


    Quote Quoting jk
    View Post
    Also, contrary to budwads statement, since the appraisal did not include the odd lot, no, your mortgage loan is not based on both lots even though it is listed in the contract. They used only your (intended) property to establish value. As I explained previously, this is a very good thing for you. It means that if/when the second lot is stripped off, your mortgage is not affected because the value of the security your mortgage is based on doesn’t change.
    The mortgage company had the sales contract and issued the mortgage never the less. And I would doubt that the mortgage company would be complaining that the secured property is worth more than what the single lot is worth.

  6. #16
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    Jan 2006
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    Default Re: Legal Description Deed and Sales Contract

    A written contract in itself is not a meeting of the minds. A contract is to memorialize a meeting of the minds. If the contract does not accurately reflect the intentions of all parties, it does not memorialize the meeting of the minds that is the basis of the contract. I’m amazed that you cannot understand thst a meeting of the minds is what it says: a meeting of the minds. It is not a written document. It refers to an understanding between the two parties. The written document is intended to reflect that understanding.

    Especially given it was not the intent to purchase the other lot, that proves the written contract does not accurately memorialize the meeting of the minds.

    so you apparently believe errors in contracts can’t be corrected. What an odd position to hold.

    and who said the lender had the sales contract? Oh, you think it’s a requirement the lender read the contract. That’s cute. It’s wrong.

    The fact the appraisal did not include the odd lot proves not all parties read the contract. It also proves the loan was based on the value of only the intended purchase. Somebody ordered the appraisal (usually the lender) and the fact they ordered an appraisal on only the property the op intended to purchase speaks volumes of what the lender understood the sale to include.

    At what point does the law say that after all due diligence in a transaction of the meeting of the minds that it was a mistake? According to you, any contract could be deemed a mistake. That is not the case.
    And no, I’m not saying ANY contract can be deemed a mistake. I’m saying one where it has become obvious that neither party intended the contract to be something different is eligible to be addressed, in court if necessary. It is obvious the contract does not accurately reflect the actual meeting of the minds that us the basis for the written contract.

    As to how long does one have to address the issue? Too many situations possible to even start addressing that point

  7. #17
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    Oct 2016
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    Default Re: Legal Description Deed and Sales Contract

    I don't disagree with you jk but the fact there is not only a contract that is wrong here. There is also a deed granted.

  8. #18
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    Default Re: Legal Description Deed and Sales Contract

    Quote Quoting PayrolGuy
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    I don't disagree with you jk but the fact there is not only a contract that is wrong here. There is also a deed granted.
    The point?

    The deed is based on the contract. The contract appears to be based on mutual error.

    In the big picture the deed is meaningless. If the underlying contract is defective, the deed is effectively invalid.

    I presume the same party that included the error in the sales contract provided the property description to whomever wrote the deed.


    Since courts deal in equity it becomes simple to understand that the sale can be corrected. It is inequitable for the op to be allowed to retain ownership when even the op admits it was not the intent to transfer title to the separate lot.


    So, let me ask you this: do you recognize your property by it’s legal description? I am quite familiar with legal descriptions of property and could not determine if the legal description of my property is accurate without further research if somebody was to hand it to me on a sheet of paper. Most people accept the legal description on such a contract as accurate and they get to because if the subject property is listed by its address, the contract is clear that the intent was to convey the property at the listed address and not at two separate addresses unless otherwise explained it does include multiple properties.

    And this brings about another question.

    when I sold real estate, contracts were typically written with the property being described as

    address of subject property

    then often followed by a legal description

    then followed by the tax id

    (the last 2 not necessarily in that order)

    I wonder how the property was described in the sales contract. If the contract states


    123 My Street
    Anytown, Georgia


    regardless what the legal description states, it becomes apparent the intent was to convey title to 123 My Street. Only if it included both addresses would I give any credence to any argument the contract as written may rule.


    This is the pertinent section of the Georgia association of Realtor purchase agreement.

    1. Purchase and Sale. The undersigned buyer(s) (“Buyer”) agree to buy and the undersigned seller(s) (“Seller”) agree to sell the real property described below including all fixtures, improvements and landscaping therein (“Property”) on the terms and conditions set forth in this Agreement.
    a. PropertyIdentification:Address:
    City
    MLS Number: Tax Parcel I.D. Number:
    b. Legal Description: The legal description of the Property is [select one of the following below]:
    ��(1) attached as an exhibit hereto;
    ��(2) the same as described in Deed Book _________, Page _________ of the land records of the above county; OR
    ��(3) Land Lot(s) of the District, Section/ GMD, Lot ____________, Block ______________, Unit _____________, Phase/Section
    of __________________________________________________ __________________ Subdivision/Development, according to the plat recorded in Plat Book ____________, Page ___________, et. seq., of the land records of the above county.
    ____________________________
    __________________________________________________ ___________________________
    , County
    _________________________________, Georgia, Zip Code
    _____________________________________
    _____________________________________

    ________________
    __________________
    _______________________________
    __________________
    _________________________________
    if ops contract was similar, the address will be the primary source of info the court will use to prove the intent of the contract was meant to convey. If there is a disagreement between the address listed and the legal description, when it goes to court, the intent of the contract will be what the court uses to make its ruling.

  9. #19
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    Default Re: Legal Description Deed and Sales Contract

    The fact is that right now OP owns the second lot mistake or not. And she holds all the cards. If the seller wants the lot back, he will have to come to terms with the OP or he has to sue in court.

  10. #20
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    Default Re: Legal Description Deed and Sales Contract

    Quote Quoting budwad
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    Bla bla bla. The fact is that right now OP owns the second lot mistake or not. And she holds all the cards. If the seller wants the lot back, he will have to come to terms with the OP or he has to sue in court.
    Op doesn’t not only not hold all the cards, they don’t have a very strong hand. While I would expect the developer pay all expense this cost the op, they aren’t due anything more. Of course op doesn’t have to undertake the changes if the seller isn’t willing to pay the bills. If the seller is willing to sweeten the pot, then it’s a win win.

    The cost to defend the suit will likely be well in excess of the costs of correcting the issue. That means if op can’t come to an agreement with the seller it will cost them more to argue this in court. The op is likely to lose anyway and will lose financially even with the seller paying the costs to correct the issues. So, weak but winning hand, if losing money can be construed as having a winning hand.

    Depending on how this error happened, it may not cost the seller a penny when it’s said and done. If whomever wrote the documents is an outside party with a fiduciary duty to the seller, this whole thing may be covered by their E and O insurance or at least paid out of that party’s pocket.

    why must you continue to troll me budwad? You’re wrong in your basic premise regarding this issue. Resorting to retorts such as “bla bla bla” coupled with no substantive information show a level of immaturity I never thought you were capable of. Maybe your employment problems are starting to weigh on you.

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