Legal Question in Real Estate Law in Georgia

Lien Filed On House

Entered into a contract with a �We Buy Houses� company. The contract stipulated Agent was financially responsible for any repairs & upkeep on the house.

Agent/Landlord did NOT file the Warranty Deed, & we are still listed as the Owners.

Agent put tenants into the house (Lease Purchase). Contract between Agent/Tenants listed Agent as financially responsible for any repairs on the house.

Hot water heater broke & clean up was required in the garage.

Agent verbally authorized clean up with a Restoration Company. Tenant signed the Contract with the Restoration Company. Nowhere on any of the paperwork from the Restoration Company are we listed as authorizing the work to be done.

Restoration Company charged exorbitant amount for services. Insurance company paid half of the amount charged (Ins. Adjuster says price charged was too high).

Restoration Company filed a lien against the property. They cashed the check from Insurance Co.

Agent voided contract 4-days ago and returned the house to us. Agent denies he authorized the work for the clean up.

Tenants are refusing to pay balance to Restoration Company.

Who is responsible for the balance owed? How do we protect ourselves at this point?


Asked on 5/27/08, 1:43 pm

1 Answer from Attorneys

Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Lien Filed On House

Take all the documents to a lawyer to see the disaster created by entering into the transactions in the first place. Based on your post, you might not even own the property after apparently giving it away (and I don't have to guess that you remained liable for the mortgage). The fact that a deed is not recorded does not mean it is not valid, and there might be little to no significance in being "listed" as owner, as that is not a meaningful, legal term.

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Answered on 5/27/08, 2:01 pm


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