Legal Question in Real Estate Law in Texas

warranty deed

My friend signed a warranty deed on propertyoverwhich was delinquent in taxes by more than the property was worth to a relative who owned the property nextto his to start a business. He was supposed to invest money & the land to make a corporation. The other couple got a 300,000 loan to pay off the taxes and liens on the property and make a building & signed the property over to the bank. My friend changed his mind and does not want to get a loan to invest in the corporation but wants to own half of the building & the business without investing any money. He did not pay anything and has not paid the loan payments while thebuilding is being constructed. Now he wants them to sign over the lots back to him or he will sue. He is my friend but he is planning to make them lose everything & default on the loan. Can he do that? There was no written agreement, but a verbal one which he is not complying with. He wants to say that they tricked him into signing over the property so that they have to sign back the property and default on the loan. Does he have a case? He was trying to get me to get a loan to buy some land and invest in the corp. I feel sorry for them & wonder if he can actually do it and how much it will cost?


Asked on 1/24/07, 12:43 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: warranty deed

The payment of the taxes would probably be proven to be adequate consideration for the property and the warranty deed would be upheld. If he sues them to quiet title, they can prove the payment of taxes and will probably win if the facts are as you say they are. It may take 10-20K to defend, but they can request their attorney fees be paid by your friend. Additionally, it will cost your friend roughly the same amount to sue, so he may not bother.

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Answered on 1/24/07, 6:22 pm


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