I bought a house from an investor who wanted to do the deal using a Gift of Deed. I still took out a loan to pay him so it was not given to me. After the fact, found out this is not on the up and up because I cheated the state of Va out of some taxes. My questions are should I get a Deed of correction, would I need a lawyer to do so and how much trouble could I get into if I did not correct the deed?

Thanks Jeff

Let me see, he wanted to sell it on a "gift deed" and you did not have a lot of red flags go up.
And how did you get a loan using this sort of deed.

Did you do a title search and get title insurance to be sure he had the legal right to sell this property. I am sorry I had so many bells and flags going off reading this, I am thinking you were cheated in this somehow and just don't know it yet.

I would get a real estate attorney to look over this entire deal and also do a complete title search

This is my first investment property. I believe that the bank did a title search and I do have title insurance. I am not sure how he got the bank to do but I know that he has done this before. I also have a friend who is a real estate investor who said that he has done this before so I thought that it was OK. He said that it would "save" me some taxes. This is the same property, from the question titled "Eviction of Personal Property", that the former owner is saying that the investor was going to give her a lease option and then she cought the house on fire. I do not believe that the investor has cheated me. He is friends with the other investor that I know. If I had not bought the property, my friend was going to. I just do not want to get into trouble for the way that I bought the house.

Jeff