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The Previous Sale Did Not Transfer the Parking Space or Lower Level

Real Estate Agent with Keller Williams Capital Properties DC AB15253

January 25, 2015 01:29 PM

This is a cautionary tale.

I am representing the buyer in the purchase of a four story condo that is a bit unconventional in its legal structure. The property actually is being conveyed via the transfer of two deeds - one for the upper three floors and a second separate deed for the lower level. (The lower level is completely integrated with the upper three floors as in any single family house. It is not an accessory apartment or an English basement.) In addition there is a separate deed for the parking space. My buyer is wonderful with a fantastic eye to detail. She was concerned that nothing be dropped in the transfer of the property, so I was careful to specify in the contract that the sale included the upper levels, the lower level and the parking spaces. She was pleased that I was so careful to specify the three parcels included in the sale.

Settlement is scheduled for next week. Fast forward to last week when my settlement company let us know that there is a problem with title. The previous owners still owned the parking space AND the lower level of the condo. The tax record has been mailed to the current owner for the last 12 years, who seems to be paying it even though it does not have his name on it.

Now the current settlement company is reaching out to the previous settlement company, asking them to contact the previous owners to sign a supplemental deed to transfer the parking space and lower level to the current seller so that we can move forward with settlement. It will get straightened out but it is appalling that this has happened to my buyers.

The message from this current mess? First is that - honestly - if there is a way to make a simple transaction complicated, it seems to come my way because I worry about everything! Second- when representing a buyer, make sure that the contract specifies accurately what is being conveyed. I suspect that the previous contract did not identify that there were 3 parcels being conveyed so that the previous settlement company was clueless. If it is not in the contract, the settlement company is not going to pick it up. Utlimately it is up to us to do our jobs correctly.

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James Dray

Fathom Realty - Bentonville, AR

Interesting Lise but I find it more interesting the other settlement company is not going to stand up for their issue.

Jan 25, 2015 07:40 PM

Roger D. Mucci

Shaken...with a Twist 216.633.2092 - Euclid, OH

Lets shake things up at your home today!

Good thing you were the person working on this contract and will make sure things are done correctly. This could have been quite a mess.

Jan 25, 2015 07:46 PM

Wayne Martin

Wayne M Martin - Chicago, IL

Real Estate Broker - Retired

Lise, sounds like the attorney who drafted the original documents did not think it through! Good catch! Enjoy your day!

Jan 25, 2015 09:15 PM

Roy Kelley

Retired - Gaithersburg, MD

This is good reading for prospective purchasers who expect parking spaces to be included in their purchase.

Jan 26, 2015 07:11 AM

Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

Lise Howe that is awful, sounds like someone missed the 2nd deed. We recently had a carport with a condo go missing that was on a seperate deed. I hope they get your 1st floor deed worked out

Jan 26, 2015 09:09 AM

Evelyn Johnston

Friends & Neighbors Real Estate - Elkhart, IN

The People You Know, Like and Trust!

Wow Lise, that sounds like a nightmare, and I have to say our MLS doesn't give us enough room to list three seperate tax records. There are only two spots, so I can see where a problem could occur.

Jan 26, 2015 10:32 AM

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck with the clients. I am sure it is a nightmare for the agent and buyers.

Jan 26, 2015 09:48 PM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

Lise, I had this happen once with a small apartment building that sat on three seperate lots. The smallest of the three, a "sliver lot" that was under the middle part of the building had not been conveyed in a previous transaction, and as taxes hadn't been paid in years, there was a pending purchase on a tax sale. We got it straightened out, but yikes! I stopped using the title company when they didn't pick up on the problem until the head of the company noticed it on his way to the settlement table.

These are the transactions where we really do learn by experience.

Jan 26, 2015 11:18 PM

Lise Howe

Washington, DC

Tom White

Franklin Homes Realty LLC (615) 495-0752 or www.FranklinHomesRealty.com - Franklin, TN

Franklin Homes Realty LLC, Franklin TN

Lise, it seems to me the previous title company really blew it! If they did their research at all, I would think the other properties would have shown up as part of the previous transfers. Yikes, that's upsetting.

Jan 27, 2015 01:14 AM

Ginny Gorman

RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI

Homes for Sale in Southern RI and beyond

Lise, you raise an interesting real estate issue that many of us have not experienced...I appreciate being enlightened!

Jan 27, 2015 05:39 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

"Second- when representing a buyer, make sure that the contract specifies accurately what is being conveyed."

I would add, "When representing a SELLER, make sure that the LISTING specifies accurately what is being conveyed."

Jan 27, 2015 09:21 PM

Joe Petrowsky

Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT

Your Mortgage Consultant for Life

Good morning Lise. I was once purchasing a condo that was being advertised with one deeded space, when my attorney did the search is was discovered there were two spaces. I eventually sold one of them off.

Great job with this transaction.

Jan 28, 2015 06:47 PM

Sussie Sutton

David Tracy Real Estate - Houston, TX

David Tracy Real Estate for Buyers & Sellers

I hear you Lisa! I seem to attract the same type of buyers all the time. I am working to change this too. Not sure how to do it but I am working on it and I think I now have a handle on this situation.

Jan 28, 2015 11:36 PM

Rebecca Gaujot, Realtor®

Lewisburg, WV

Lewisburg WV, the go to agent for all real estate

I agree with Lenn about the listing specifies what is to convey. Seems like the LA didn't do their job...but I know the buyer is very happy that you did yours!!

Jan 28, 2015 11:49 PM

Lise Howe

Keller Williams Capital Properties - Washington, DC

Assoc. Broker in DC, MD, VA and attorney in DC

In fairness to the listing agent he did note that the parking spaces, lower level and upper level were all separate deeds. The issue was that the previous title company neglected to convey the property accurately. If it weren't for the listing agent we would not have known that there were three parcels

Jan 29, 2015 10:46 AM

Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES

Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL

Florida Waterfront and Country Club Living

Lisa, it pays to pay attention to detail! Good for you and your buyer, at least this was discovered before the transfer and closing.

Jan 30, 2015 09:44 AM

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