Legal Question in Real Estate Law in Maryland

I am looking to purchase a home that was bought by the lender at auction. The auction purchase has not been recorded. The company is listed as the seller by county and state records indicate that the foreclosed owner is still on title. It appears to me the company is trying to avoid recordation on th auction purchase. Of course they have a recommended title company. Is this legal?


Asked on 8/04/10, 10:24 am

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

The auction purchase deed must be recorded BEFORE your deed to make it a valid transfer. While really the best practice is to immediately record after ratification of sale, sometimes lenders delay recordation and wait until a sale is imminent. This can be resolved by getting a trustee deed now, so long as the signed deed is delivered before your settlement.

It is illegal to force you to use the seller's title company although they can legally "recommend" their own title company. However, you would benefit from hiring your own title company and making sure the settlement attorney gets the foreclosure deed recorded in the appropriate order.

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Answered on 8/09/10, 1:12 pm


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