I think there is something missing from the facts you give. Were there any other liens superior to that of the finance company? If the “heir” did not inherit anything, why is the title company listing him? You should have your parents ask for a copy of the decree of distribution by which the “heir’s” sister obtained the property. Perhaps there is something in it which gives the “heir” some right. I would also contact the attorney for the mother’s estate to find out if and why the “heir” has a claim to the real estate.
My parents recently signed a contract to buy a house which had been foreclosed on. The current owner of the house is a large financing company owned by a company which is a household name. My parents put down $1,000 in earnest money, giving it to the local real estate company whom this Texas corporation had contracted to sale the house.
On May 15, my parents were suppossed to close on the house. The company did not inform them that the title search had found a former heir to the property (from two sales ago) who did not sign a quit claim deed. When this heir was contacted, he refused to sign the quit claim deed and is asking for 1/4 of the sales price of the house from “anyone he can get it from.”
If he refuses to sign and the seller and real estate company refuse to do anything, what rights do my parents have? Can this guy’s rights be declared null and void? He was co-executor of his mother’s will, but his sister was the sole heir on the real estate contract which sold the property the first time.
Re: former heir will not sign a quit claim deed - Posted by David Krulac
Posted by David Krulac on July 01, 2002 at 20:45:39:
you need to talk to the title company to clear up the heir problem. It would seem that TITLE INSURANCE would cover the heirs claim, if substantiated.
if unsubstantiated they your parents should be able to settle with their own title insurance, not excepting the heir.
as a last resort, you could have an attorney, paid by the seller do a Quiet Title Action (lawsuit) against the former heir. Perhaps in the mean time renting the house to your parents with an option to buy when the title issue is resolved.