Legal Question in Real Estate Law in Massachusetts
Title Issue
We sold our house, signed a P&S and thought we were okay to close but got the call that we didn't have clear title. My husband bought the property from his brother & sister inlaw a month prior to our marriage (2001). He did not have his own RE Attorney, nor did he buy Title Insurance. The brothers attorney handled the closing (although on the settlement my husband paid all attorney fees, tax stamps, etc). Here's where it gets sketchy: The brother (seller) was also the lender (bank). So wouldn't his attorney then have an obligation to us the buyer, to make sure there were no Title issues? Isn't this a conflict of interest in itself?
The problem with the Title is that the brothers wife did not sign off on the sale, and a Power of Attorney giving the husband power to sell, can not be found (house was in a Trust). The wife has since died and can't vouch for the sale.
Meanwhile the costs of this delay are rising steadily ie rate lock extensions, rental costs, property maintenence, nevermind huge attorney fees - he estimates 5X the workload so far.
Can we sue the brothers attorney since it was closed without proper paperwork causing the title problem we now face? Also who can sue.. my husband only, both of us, what about just me?
1 Answer from Attorneys
Re: Title Issue
You really should pose these questions of your attorney. It does sound like a real mess.
It would be necessary to review the documents which your brother received when he bought the property. It would also be necessary to determine what your actual damages are, to determine whether the costs of a suit would justify pursuing it. (Lawsuits do cost a significant amount of money, which you are not guaranteed to recover.)
On the facts, it is not clear that you have standing to sue the attorney, as he did not represent you in the original purchase. You indicated previously that your husband was unlikely to sue his brother or cousin.
It is clearly a difficult situation. Assuming that your attorney is fully-informed, he should be able to answer your questions.
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