Legal Question in Real Estate Law in California
I purchased a duplex from fannie mae (bank owned) in July of 2011. I completely rehabbed the property as it was completely gutted and destroyed, and I now have it completely filled with tenants. I came to find out that they incorrectly mixed up one number on not only the grant deed but the entire foreclosure and possibly even before they had mixed up one parcel #. Since the legal description is all that the county goes off of I technically own the property next door and the guy next door actually owns my property. (The same person owned both properties initially and he lost mine to the bank) Title has made me all kinds of false promises and solutions only to turn around and tell me never mind we have to do this another way.... now today they have told me there is nothing they can do. I am currently researching the chain of title so I can determine myself who is at fault.... (pretty sure the title company) and I do not want to settle for their measly title claim covering the purchase price only after having offers to sell much higher (as I completely rehabeed it because I bought it for an investment)My hands are tied as I cannot refinance or sell and have poured buckets of money into it. My question is what other ways can title be transferred to me? I believe title really messed this up and is telling me there is nothing to do and trying to make me cash out on title claim I believe because they do not want to be held responsible for their mistake) Can I sue for a quiet title action? Thank you!
3 Answers from Attorneys
You may be able to sue to quiet title. You may have other options and legal theories. You should have gotten a lawyer involved in this as soon as you found out about the issue. This is a legally and factually complex situation and not something that even a 25-year real estate and title lawyer such as myself can meaningfully comment on without all the facts and documents, and probably some legal research as well. My gut reaction, though, is that your most direct claim is against the seller, for failure to convey clear title. Bear in mind, however, that the parcel number is irrelevant to title. It is the actual metes and bounds that matter. It's not entirely clear from your question where the error lies. So there are really just too many possibilities to sort out in an internet question. You really need a lawyer in person on this one. I would be happy to help, and I certainly have the requisite expertise, having been a real estate litigator for nearly 25 years, including over six years as a V.P. and Associate General Counsel to the parent company of Fidelity Natl. Title and Chicago Title, among others. I'm not exactly around the corner however. So I suggest you try to find local counsel. If you can't find a local attorney with the necessary experience, I would be happy to assist you or or to consult with an experienced local litigator who lacks the necessary arcane title expertise. So feel free to contact me if you need further assistance.
You have a complicated situation. You might want to look into, among other things, something known as the "good faith improver" statute.
The parcel number is only relevant to the tax assessor, which may or may not create tax problems, but can be corrected. You do point out that the legal description is for the previous owner's property next door. Have you had a discussion with him about correcting it without going through a full blown quiet title lawsuit?
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