Recorded option... - Posted by Scott T.

Posted by Tom PA on August 25, 2003 at 20:34:38:

You have a beef with the Seller.

The Buyer has a beef with the Seller and his Title Company. Hopefully he bought title insurance.

Contact an attorney if you want to pursue matters.

I know that this isn’t much help but I am not an attorney. If there were enough $$$ in the game then I might push it but otherwise just chalk it up to experience.

You need to find a few ways to protect yourself better. There are several solid methods to do so. I would try to explain but others on this board are probably better at it than I am.

Recorded option… - Posted by Scott T.

Posted by Scott T. on August 25, 2003 at 17:39:59:


Ok, here goes, I did a sandwich l/o with a seller on June 21. The seller then found a buyer (after I had a signed contract). Upon finding out about this, I went to record my option-to cloud the title. I recorded my option on July 29 and the seller closed with his buyer on July 31, after I clouded title. Well the house closed and now I would like to know what my options are (legally) since the title company allowed the closing with my cloud on title. Is it possible that a title company would do a title search that much ahead of closing. I thought they generally did the search the day before closing. Whatever the policy, what can I legally do now, and is my conflict with the seller or the closing attorney, or the title company, or all three.
I just want to get this resolved and get whatever $$ I can out of whomever I can. I feel as though I am getting taken advantage of and to be honest, it leaves a bitter taste in my mouth for real estate investing with sandwich lease options. I would love to hear from anyone that has ever had this type of situation happen to them, and what were the results of the situation.

Thanks in advance,

Scott T.

Re: Recorded option… - Posted by Margalat

Posted by Margalat on August 26, 2003 at 12:51:28:

What you should have done is record your option as
soon as the contract was signed not wait until over
a week later. I agree, you may havew to chalk this
up to experience.

Performance Mortgage - Posted by mattc

Posted by mattc on August 26, 2003 at 12:17:55:


You can also do a Performance Mortgage for
your next deal. Get the Bronchick L/O course
if you don’t have it already.

Good luck,

Re: Recorded option… - Posted by Brent_IL

Posted by Brent_IL on August 25, 2003 at 20:51:59:

I can’t see any court reversing the sale, but if you have a recorded lease/option and no other documents were filed until the sale closed, the sale is subject to the existing lease and option. Get a lawyer to give the buyer a notice to vacate and go after the seller for damages. People litigate, but not usually when case law is well established and the documentation is cut-and-dry. Either the seller or the title company will settle. Be glad you didn?t complete the sandwich before things fell apart.