Legal Question in Real Estate Law in Colorado

title question

A property being purchased under a sale contract by a married couple was transferred by the couple to a corporate entity by a warranty deed. This transfer took place prior to the couple actually receiving and recording a deed from the prior owner/seller. The property was eventually paid off and a warranty deed recorded which transferred the title to the couple several years after the deed to the corporation was recorded. The original seller was not a party to the transfer to the corp. Did the fact that the couple had the property under contract and were paying property taxes give them the right to make the transfer to the corporation legal? If not, are the couple still the true owners of the property rather than the corp?


Asked on 3/06/08, 9:08 am

1 Answer from Attorneys
Richard Gee

Re: title question

The transfer to the corporation transfered no title to the property, as the couple, at the time they signed and delivered the warranty deed, did not have title to the property. The warranty deed to the couple from the prior owner/seller was an effective transfer of title. The couple therefore has always owned title to the property and the corporation's supposed title was never effective, except insofar as the corporation may have a claim in fraud and breach of warranty against the couple.

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Answered on 3/06/08, 1:25 pm


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