Legal Question in Real Estate Law in Oklahoma

If a warantee deed is not valid can you deduct costs

We purchased a home with a warantee deed, and a balloon payment due. The balloon payment was verbal and no contract was recorded either on the deed or at the courthouse on any papers. Now we are unable to get a clear title, we tried to refinance and they went ahead and finished it since it was a refi, but now I am out money for extra expenses including extra title work, title searches, additional appraisals, all required by the lender due to the condition of the title. Can I deduct this from the amount due on the balloon payment? I am being threatened if I do this with the seller sueing me.

Thank you for your help.


Asked on 4/29/04, 1:35 pm

1 Answer from Attorneys
Hunt John Urgentlegalcare.com

Re: If a warantee deed is not valid can you deduct costs

Both you and the seller are foolish to have tried to complete such an important transaction without a written contract outlining the terms. In such contracts the issue of who pays what fees are determined in advance of completing the transaction. I would say it is customary for the seller at his expense to bring the abstract up to date for review by your attorney or title company which you pay to verify and guarantee title. Seller would also pay for any legal or other expense to clear any defects of title as well. Normally it is at your expense for appraisals and other expenses for things required by your lender including inspections. You would both do well to set down and resolve who pays what between you or submit it to a mediator with each pary paying 1/2 the cost of mediation.

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Answered on 4/29/04, 2:15 pm


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