Legal Question in Real Estate Law in Florida
Unrecorded Lien and Quit Claim Deed
My neighbor obtained a piece of property through a quit claim deed. He recorded the deed.
About 3 months after he recorded the deed, somone else recorded a mortgage on the property. This mortgage was dated almost two years before he got the property.
This mortgage company says he owes them the money, because he now owns the house. The person that quit claimed him the property, is the person that obtained the mortgage with this lender.
Shouldn't they have recorded the mortgage earlier?
Does he have to pay them or do they need to go after the previous owner?
Will this cloud the title if he tries to sell in the future?
2 Answers from Attorneys
Re: Unrecorded Lien and Quit Claim Deed
I think the deed prevails, but there will be a lawsuit. Use our tutorials to win. Jurisdictionary.com
Re: Unrecorded Lien and Quit Claim Deed
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney�s individualized advice for you. By reading the �Response� to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
RESPONSE: There is an old saying, "First in time, First in Right" The mortgage company never recorded their interest in the property so your friend had no way to know that they existed. If they had recorded their mortgage, then your friend would have known about them and presumably never would have bought it. (1) Your friend, if he bought Title insurance should advise them in writing; (2) He may need to file an action to quiet title and for slander of title against the mortgage company for encumbering your friend's property and to clean up his title; as well as for fraud against the prior owner for not disclosing the outstanding debt. Best of Luck,
Randall Gilbert
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