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  1. #1
    Join Date
    May 2019
    Posts
    5

    Default Sales Contract and Deed Conveyed Two Lots Instead of One

    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?

  2. #2
    Join Date
    Oct 2016
    Posts
    2,857

    Default Re: Legal Description Deed and Sales Contract

    I'm not saying it isn't correct but who told you would have to refinance?

    If the person that deeded the land actually owns(ed) you are in a pretty strong position. ie you on the lot.

  3. #3
    Join Date
    Mar 2013
    Posts
    16,862

    Default Re: Legal Description Deed and Sales Contract

    Take out your title insurance policy and call the title insurance company's claims department and report this. There should be a phone number in your policy papers. The title insurance company should be the place to get this handled.

  4. #4
    Join Date
    May 2019
    Posts
    5

    Default Re: Legal Description Deed and Sales Contract

    A friend that is a mortgage broker said we may have to refinance if the bank agrees to deed the lot back.

    I do have title insurance. I will call them too.

  5. #5
    Join Date
    Feb 2008
    Posts
    1,110

    Default Re: Legal Description Deed and Sales Contract

    did the mortgage company use both lots to appraise the mortgage/purchase? Did they not think to bring it to your attention? (Was your friend the mortgage broker on the deal?)

  6. #6
    Join Date
    Jul 2018
    Posts
    1,283

    Default Re: Legal Description Deed and Sales Contract

    Quote Quoting Wjb327
    View Post
    Since it was not just a clerical error, how would we correct it.
    Why do you say it was not a clerical error? Everything you posted up to this point indicated that that's exactly what it was.

  7. #7
    Join Date
    May 2019
    Posts
    5

    Default Re: Legal Description Deed and Sales Contract

    Myself and my husband. It is a custom builder that is building in a couple of lots. I reached out 2 days ago and he has not called back yet. We were not expecting ito purchase the additional lot. I talked to the mortgage broker that provided our loan.

    The reason I said it’s not a clerical error is because it wasn’t a typo but a complete legal description on our purchase and sales contract and the recorded deed.

    I have a call in to a real estate attorney and he’s looking over the documents for me. He’s a friend of the family. Maybe it’s a simple fix.

  8. #8
    Join Date
    Oct 2006
    Posts
    15,272

    Default Re: Legal Description Deed and Sales Contract

    If that other lot is the only other lot that the builder owned in your subdivision, how do you know that the builder did not include that lot in your purchase on purpose?

    Wait and see what the builder says. Its possible that the builder is flummoxed about the situation and wants to consult with his attorney before deciding how to respond to you.

    Its also possible that the builder wanted to be done with that housing addition and included that lot with your purchase on purpose (so as to avoid HOA fees and cost of maintenance, not all that likely but possible)

    In any case, if the builder believed that he still owned the lot and still wants to own the lot eventually he is going to respond to you, even if its through his attorney. If he doesn't want the lot he will avoid you completely.

  9. #9
    Join Date
    May 2019
    Posts
    5

    Default Re: Legal Description Deed and Sales Contract

    The appraisal does not have both lots listed. The loan application just had our address. It slipped through a lot of hands apparently.

  10. #10
    Join Date
    Jan 2006
    Posts
    38,531

    Default Re: Legal Description Deed and Sales Contract

    Quote Quoting Wjb327
    View Post
    The appraisal does not have both lots listed. The loan application just had our address. It slipped through a lot of hands apparently.
    that would appear to be the appraises error but it could benefit you.

    If the appraisal had included rhe other lot, this would mean your home without the lot would have appraised for less. It may have not appraised high enough to meet the selling price of your home. In that case you would have had a mess since you would have to pay the difference in mortgage balance and appraised value (and likely even more if the loan had to be less than 100% loaned).

    As it sits now, since the appraisal didn’t include the odd lot, it won’t affect the amounts involved in the mortgage. It might be as simple as the lender modifying the property description and peeling that lot out of your loan. Of course there is a bunch of paperwork involved and it’s not likely fo be without cost. Of course it will also have to be either you deeding the lot back to whomever owned is (caution, this method could have some tax issues) or there could be a deed correction.

    Regardless, if I were you I would expect the seller to cover ALL the costs to correct this (including anything regarding your lender) . You have a lot (pun intended) of leverage to demand they pay the costs.

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