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Clouded Title, Adverse Possession

By
Real Estate Agent with South Texas Land Team, LLC.

Have you ever come across a property with title issues?  Maybe some back taxes?  Well I wish it were that easy for a recent piece of property in my area.  There are several ranches that sold town lots for development in the early 1900's.  However these lots were never developed and most of the people who bought the lots stopped paying the taxes. 

What happened is the land never was divided and eventually the original seller passed the ranch land down to his heirs without a clear title.  The heirs own over 200 acres of land with over 100 people and families holding deeds to the city lots that were never developed.  The heirs to the 200 acres have been current on the taxes for the entire parcel which includes the city lots.

This is a clear cut case of adverse possession, but title companies won't touch it because of the 100 people who have deeds to the old city lots.  The title company tells him he must get the 100 people who have deeds to sign their lots over to him before they will close the property.  Sounds simple enough right?  His first phone call was to a local couple who owned one of the lots and found out that they had passed away and left the lot to their 12 children who were spread throughout the U.S.  What is the seller to do?  We have encouraged him to find a real estate lawyer and go through the process of adverse possession. 

Any other advice?

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Christopher Myers
Orlando Property Group - Orlando, FL
Greater Orlando and Central Florida Real Estate
Sounds like the attorney route is the best one.  Crazy situation!
Dec 12, 2007 12:51 AM
y y
/LSONHC';/.c - Denver, CO

I think you're on the right track with adverse possession.  I'd be only guessing when I say that with the heirs paying taxes on the property for so long, they've made lay to their claim, but Texas has got some funky laws when it deals with R/E, so to hire a lawyer would be the right course of action.

 

Keep us posted how it turns out. 

Dec 12, 2007 12:53 AM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

I'm not an attorney, but I would think that a "quiet title suit" would be in order here.  Check with a real estate attorney for the details.

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

Dec 12, 2007 12:53 AM
Courtney Cooper
Cooper Jacobs - Seattle, WA
206-850-8841
Definitely an attorney! Wow!  That is one amazing story!  Thank you for sharing - I don't feel nearly as bad about my Seattle fence issue tyring to cloud up the title of one of my deals!!!  lol
Dec 12, 2007 01:40 AM
Ryan Smith
South Texas Land Team, LLC. - Pleasanton, TX
Thanks for the responses. It is just amazing what happens in small towns.
Dec 12, 2007 02:17 AM
Linda Box Taylor
Castle Connections Realty - Plano, TX
Your Plano, TX Realtor
Gosh what a crazy situation!  It sounds like lawyers definitely have to be involved.  Just keep us updated on what happens.
Dec 12, 2007 02:22 PM
Trey Thurmond
BCR Realtors - College Station, TX
College Station , Texas Homes
Yep... go for the adverse possession.
Dec 12, 2007 02:41 PM
Ryan Smith
South Texas Land Team, LLC. - Pleasanton, TX

UPDATE....

Despite our talks with the owner he has decided not to throw any more money at this property by getting a lawyer and has decided to wait until he gets an offer.  He says he is willing to negoitate on price due to the clouded title.

Just goes to show that you can lead a horse to water but can't make them drink.

Jan 29, 2008 12:24 PM