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| CRE Online > Real Estate Law > Bill Bronchick > Question and Answer |
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Question:
My brother and his wife entered into a Lease/Option contract on a small farm property in Vermont. The property is owned by an out-of state owner who had previously rented it for $450/month. The Lease/Option contract was drawn up by a lawyer my brother employed, and the terms were as follows: $500 as Option consideration, $550/monthly payments with $100/month of that payment accruing towards the down when the Option to Purchase was exercised at the 2 year mark. When my brother exercised his option, he had a title search done and found the property encumbered by 19 separate legal and mechanics liens. The property never changed hands. What can my brother do to recoup the "additional" monies paid to the seller, along with the fees paid for the legal expenses he incurred this far? Can he seek legal satisfaction against the seller for not discussing the fact that the property had multiple liens against it at the time the contract was drawn up and more placed on it during the 2 year option period? Answer By William Bronchick: Your brother could sue the seller for actual damages sustained, to wit: the option monies, improvements to the property and increase in value, if any. A good lawyer would have done a title search at the outset and discovered the liens. This may even be borderline malpractice on the part of the attorney. To avoid this problem, I recommend having the seller place title to the property in a land trust. This will prevent personal liens of the seller from attaching to the property. Disclaimer: The foregoing is not intended to be given as legal, financial or tax advice, but intended for instructional use only. If you require legal, financial or tax advice you should seek the assistance of a qualified professional.
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