2 years exception on title insurance

[Helpp1z]

What is the name of your state? VA

I signed a contract to purchase a property and payed the earnest money.
The realtor was pretending that he represented me.
During the title search, the title company told me that I will be given a 2 year exception on the title because it is a partition case through the court.
I want to terminate the contract, I can’t take this kind of risk.
This is when I also found that the realtor was giving me advices but was not representing me.
As for now , I was told that I will be taken to the court and will end up paying much more than the price of the property.
What should I do?

 

[quincy]

What is the name of your state? VA

I signed a contract to purchase a property and payed the earnest money.
The realtor was pretending that he represented me.
During the title search, the title company told me that I will be given a 2 year exception on the title because it is a partition case through the court.
I want to terminate the contract, I can’t take this kind of risk.
This is when I also found that the realtor was giving me advices but was not representing me.
As for now , I was told that I will be taken to the court and will end up paying much more than the price of the property.
What should I do?

A real estate agent (generally) is not an attorney and cannot represent your legal interests. You should speak with a real estate attorney if you want legal advice on a real estate transaction.

 

[Helpp1z]

A real estate agent (generally) is not an attorney and cannot represent your legal interests. You should speak with a real estate attorney if you want legal advice on a real estate transaction.

I hired a real estate attorney to help me out. He said that if I refuse to proceed with the purchase then I will be taken to court and will loose lots of money.
Should I seek for a second opinion?

 

[quincy]

I hired a real estate attorney to help me out. He said that if I refuse to proceed with the purchase then I will be taken to court and will loose lots of money.
Should I seek for a second opinion?

Getting a second opinion wouldn’t hurt, especially if “lots of money” is at stake.

 

[Helpp1z]

Getting a second opinion wouldn’t hurt, especially if “lots of money” is at stake.

Can the court force me to buy the property? I don’t want to risk 2 years of questionable ownership. Nobody told me about this problem prior the title search.

 

[quincy]

Can the court force me to buy the property? I don’t want to risk 2 years of questionable ownership. Nobody told me about this problem prior the title search.

A court can force you to purchase the property. Specific performance, as defined by Black’s Law Dictionary, is a remedy that requires the exact performance of a contract in the specific form in which it was made, or according to the precise terms agreed upon.

Specific performance is an uncommon remedy for real estate sales, however, and would be ordered only if money damages are seen as inadequate compensation for the breach of the agreement.

It is more likely that you will lose your earnest money deposit and any additional demonstrable monetary damages the sellers might have suffered from your cancellation of the contract.

 

[quincy]

Here is a link to Virginia’s law on specific performance:

https://law.lis.virginia.gov/vacode/title8.2/part7/section8.2-716/

You will want your purchase contract reviewed by your second attorney to see if his assessment of your legal position is the same as the assessment offered you by your first attorney.

Good luck.

 

[Helpp1z]

On one hand there is no limit to additional demonstrable monetary damages. The only limit is the sellers imagination.
On another hand within 2 years someone can take the property away?
It seems like a lose-lose situation for me.

 

[Helpp1z]

Here is a link to Virginia’s law on specific performance:

https://law.lis.virginia.gov/vacode/title8.2/part7/section8.2-716/

You will want your purchase contract reviewed by your second attorney to see if his assessment of your legal position is the same as the assessment offered you by your first attorney.

Good luck.

Thank you. I will do.

 

[quincy]

On one hand there is no limit to additional demonstrable monetary damages. The only limit is the sellers imagination.
On another hand within 2 years someone can take the property away?
It seems like a lose-lose situation for me.

Because you have had a real estate attorney review your contract and offer an opinion on the facts already, I won’t second guess his opinion - but you can. You should seek out another review by another real estate attorney in your area.

Again, specific performance would be an unusual remedy for a seller. The confiscation of the earnest money is generally considered a sufficient remedy for a seller when a real estate contract is broken.

Good luck.

 

[zddoodah]

The realtor was pretending that he represented me.
. . . I also found that the realtor was giving me advices but was not representing me.

Can you elaborate as to what these statements mean. "Pretending that he represented" you? "Giving [you advice] but . . . not representing" you?

the title company told me that I will be given a 2 year exception on the title

Also not quite sure what that means.

What should I do?

You haven't explained the relevant facts in any coherent way. Subject to clarification of the facts, all anyone here can reasonably suggest is that you retain the services of an attorney, which you apparently have done. Certainly, no one here is in any position to contradict the advice you have received from someone who presumably is well-acquainted with the relevant facts.

an the court force me to buy the property?

No, but a court can enter a judgment against you for "lots of money."

Nobody told me about this problem prior the title search.

Typically, the title search is done at a time that allows the buyer to back out of the deal. If that's not the case, then you either didn't get the title search done at an appropriate time or signed a contract with unusual provisions.

 

[quincy]

It appears that the concern with the property is that another owner (or owners) could come forward and claim an interest. The property itself should not be at risk but rather the proceeds from the sale of the property could be challenged.

Whatever the case, Helpp1z has one attorney in Virginia, and apparently will be seeking advice from another. Nothing we offer on this forum will be as important as what Helpp1z will learn from a local Virginia attorney with access to all of the facts.

 

[PayrollHRGuy]

It appears that the concern with the property is that another owner (or owners) could come forward and claim an interest. The property itself should not be at risk but rather the proceeds from the sale of the property could be challenged.

The Title insurance company seems to disagree.

 

[Helpp1z]

I believed that a realtor is allowed to represent both - a seller and a buyer. And this is when he can collect 6% of the price at the closing. I presumed that in this case a realtor has to be giving valuable advices to guide both clients to insure the best possible outcomes for both.
I have learned that it is not how it works.

 

[Helpp1z]

I’m not sure if I signed a contract with unusual provisions.
l believe that 2 years exception means - no clear title.
I did hire another attorney.
Thanks to everybody who replied my post.