Legal Question in Real Estate Law in Florida

Anyway to force sale or recover damages from aborted closing?

FACTS: Our P&S contract signed in April; Closing set May; 2 days before closing learned of un-recorded option to buy by a 3rd party; 3rd party owns recorded 2nd mortgage; 1 day before closing Title Company notified us of recorded quit claim deed from seller�s ex-wife to same 3rd party; option & deed signed 11/99; option expires after 1 year; seller wants to sell to us; property in foreclosure by bank.

QUESTIONS:

1)What are our rights under our P&S contract?

2)Does Quit claim give 1/2 Deed to the 3rd party? 3)If Seller ignores Option, does the 3rd party have any rights to buy the 1st Mortgage from the bank prior to auction?

4)An Option was also signed in '96 between the Seller and his parents. Could the property still be transferred to the parents then to us?

5)Is there recommended reading before going to auction?

6)What are our rights to damages from the Seller or Title Company?

ANSWERS: First and foremost, you need a good real estate trial lawyer. Second, contact the bank and see if they will agree to sell the home to you after foreclosure, if they bid it in.

(1.)&(6.) Your rights under the contract are to sue for specific performance or damages. The seller can't deliver marketable title so you are limited to damages. Only you know what this has cost you and what you have lost. I can't tell you what you are entitled to because I don't know what it cost you. If the title co. improperly did their search and you were damaged by this, then you could sue for your loss.

The title co. did discover the problems before money changed hands and told you. Doesn't sound as though you were hurt because of anything they did.

2.) QCD probably conveys any rights the ex had to the 3d party. I would have to examine the QCD to be sure.

3.) An owner may redeem a prop. before the foreclosure sale. Only a fool would redeem if someone else was going to own part of the prop. and not pay their share.

4.) Sale thru seller's parents would not work to wipe out the 3d party's interests or to satisfy the bank. Option probably expired.

5.) Recommended reading is you bank statement. Whoever bids the most CASH at the public sale will own the property free and clear of all claims.

6.) Answered in (1.) above.