View Full Version : Validity of deed
baspalaipai
Oct 15, 2007, 09:22 PM
Would a Deed be considered legal and binding if the property being deeded to someone has a lien on it, the lender was not informed of the deed and the joint party on the loan was also not informed of the transaction being done?
ScottGem
Oct 16, 2007, 05:35 AM
First its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.
Its possible a deed could be voided if the property were transferred without satisifaction of the lien.
Fr_Chuck
Oct 16, 2007, 05:59 AM
Normally a deed can be voided ( but not automaticly) if there is a lien on the property. This is of course why a title search needs to be done, and title insurance purchased.
If on the other hand there lien was not recorded prior to the purchase, there is a possiblitly that the lien can be voided.
LisaB4657
Oct 16, 2007, 06:25 AM
I'm sorry but I'm not aware of any law or case law that allows a deed to be voided because there was a pre-existing lien on the property. The only reasons I know of for a deed to be voided are for mistake (such as an error in the legal description) or fraud.
Upon learning of the transfer, the lender always has the option of accelerating the loan and foreclosing if the loan is not paid in full.