Legal Question in Real Estate Law in New York
We want to sell a vacant parcel of land that we own in North Carolina; we live out of state. The realtor brought us a bid of $32,000 which we accepted. Now we were just sent a Substitute Form 1099 which says $32,000 and a deed which says we are selling the land for $10 "and other considerations." I do not understand. The realtor is trying to tell us this is standard operating procedure to obscure and that an HUD document is the real instrument. Please clarify. We have an attorney, but I really am unsure what is going on-it is small town North Carolina and we now are up here. The whole deal does not feel quite right to me. The attorney supposedly told the relator all was okay. I phoned our attorney, but have not received a return phone call or e-mail. Is this really standard-writing a different price on the deed than what was agreed upon? I have sold property before and have never seen anything like this.
1 Answer from Attorneys
North Carolina is an escrow state. You deposit the signed, notarized deed into escrow with instructions. The instructions generally state, dear agent, collect $32,000 in cash for me and when you have the money, you may release the deed.
Understand this well: the broker spoke falsely. The HUD-1 is NOT NOT NOT the document. The document is the escrow instructions and (if the escrow agent is the abstract company and not the title insurance company itself) an insured closing letter.
If your attorney cannot explain these terms to you, then he is on over his head and you should replace him before you lose thhe property and the money.
The $10.00 and other good and valuable consideration is a lawyer's way of telling people in the future that it's none of their beeswax how much was paid for the property. It is common except when the deed is being signed by a "fiduciary" such as a trustee or executor. But the document package sounds distressingly incomplete.
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