Legal Question in Real Estate Law in New York

closing nightmare

sold a 2 family in Brooklyn N.Y 12/21/2006. At the closing there was a satisfaction letter from an equity loan that was paid but never submitted. At the closing it was understood upon reciept of the satisfaction letter the closing fees in the amount of $24k would be released fom the lenders attorney escrow account. Two weeks later the satisfaction letter was recorded. Unfortunately the buyers lending attorney escrow account was seized by the AUSA. The title co. stated that my mortage was paid/the deed was signed, but the title will not be transfered because of the closing funds being seized. I spoke with the AUSA and she stated that I could not request the funds do to neither was the check written to or from me. I made attemps to correspond with the buyer...no reponse/buyers attorney....states just a error that will work itself out/buyers lending institution option one mortgage Stated...write us a letter and we will forward it to the buyer who never resonded. My attorney stop answering my calls. NYC records today show that the property has no leins and I am the owner. (1) Is the title co. at fault/ should title insurance covered this. (2)Can I legally sale this house again.. the contract states that I am resposible for the closing


Asked on 7/21/08, 7:10 pm

2 Answers from Attorneys
jeffrey lazroe Jeffrey A. Lazroe attorney at law

Re: closing nightmare

This truly is a mess. You have a contract to sell the property dating back to December 2006 - 18 months ago.

You are in limbo. You don't know what to do.

Title insurance is for the buyer of the house, and does not reimburse you for loss.

I presume that you are still living in the house. The mortgage discharge was recorded, but the deed transferring the property was never recorded.

Technically speaking the mortgage discharge was placed in error.

You really need a lawyer who will take the time and effort to clean up the title to the property.

This may involve a lawsuit to bring all of the parties together.

Otherwise, you will still be in limbo, afraid to sell the house because of fear of a lawsuit, and not really wanting to live in a house.

I am surprised that your mortgatge company isn't commencing a foreclosure action because of non-payment of the mortgage.

So you should act fast to resolve the situation.

If you would like to discuss this matter further, please feel free to contact me.

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Answered on 7/22/08, 12:07 pm
Michael Markowitz Michael A. Markowitz, PC

Re: closing nightmare

I am a little confused by your question.

1. Were all your loans satisfied?

2. Did you sign a deed?

3. Did you receive the net proceeds from the closing?

If the answer is yes to all three, there is nothing for you to do. A deed is valid even if not filed. So, you cannot resell the house - that would be fraud.

If the answer is no to any one of the above three, you must contact a lawyer to protect your rights.

Mike.

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Answered on 7/22/08, 2:42 pm


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