I build homes. I did a replat on two adjoining lots and then built on both. The replat was done six months before building began. I recently sold and closed on of the lots. I then discovered that the replat had not been recorded until the deed had transferred. Here are my questions:
1. Will a quit claim from the new owner suffice to set things straight?
2. If not, will a corrective deed work?
3. Is this something that the new owners lender must become involved with?

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1. Will a quit claim from the new owner suffice to set things straight?

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No, unless the new owner wants to give the property back to you. I doubt that is what anybody wants.

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2. If not, will a corrective deed work?

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Assuming the problem is that the deed refers to a plat that hasn't been recorded, yes. Record the re-plat, and then do the corrective deed referring to the book, page, and date of recording of said re-plat. I am somewhat puzzled by this; did the deed not refer to these details?

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3. Is this something that the new owners lender must become involved with?

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Well, sure. The mortgage would refer to the legal description in the deed, and to the book, page, and recording date of the deed (again, I assume that it does). So the mortgage too should be corrected.

A Warranty deed is a deed issued by a seller to a new owner warrantying that the seller has clear title to sell the property. Because of the re-plat the seller could not warrant clear title since the property was subdivided and the subdivision not recorded. This might even be considered a fraud.

I'm surprised that the buyer's title search didn't discover this before closing, unless the buyer didn't obtain a title search because of the warranty deed. So yes you need to do as AK suggests and soon before the buyer(s) sue you.

The amount of land in question is minimal. So, in your opinion a quit claim deed would suffice, assuming the new owner had no objections? I just don't want to have this property tied up for months having to deal with a lender that is not local.

No I don't think a quit claim deed is enough. I'm assuming here that you already issued a warranty deed at the closing. Since that deed does not convey clear title to the property being sold it has to be amended.

I don't think you need to wait on the lender, you simply get the re-plat recorded, issue an amended deed with a copy to the lender.

The re-plat has been recorded. So the lender cannot prevent the owner and I from proceeding with the corrected deed?

Amended deed, rather.

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Originally Posted by don1509

The re-plat has been recorded. So the lender cannot prevent the owner and I from proceeding with the corrected deed?

Amended deed, rather.

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Why would the lender want to impede your efforts to fix the problem? A problem which, by the way, either your lawyer, your title company, or the lender should have seen at the beginning. You still not have not explained, by the way, how this foul-up managed to take place.

I hired my survey company to do a re-plat so both lots would be buildable. The re-plat was done, approved by the city and I built on both lots. Six months later, I sold the house from whose lot the adjustment was made. Now I am preparing to sell the other lot and found that the re-plat, while done, was not recorded until after the first lot conveyed by warranty deed. I asked the title company about fixing the problem, and they thought that I had to plead with the lender to amend the deed.

So you are saying the deed recited that the following was conveyed: "Lot __, Block __, of _____, according to the replat dated ______"? And said re-plat hadn't been recorded at the time of the deed?

You need to have an attorney look at all the documuments, but it appears to me that recording the re-plat may fix the problem (especially of the deed doesn't include recording information for the re-plat). I still think it is mighty peculiar to write a deed without referencing that.

It's not a matter of "pleading with the lender". The lender should be as anxious as you are to make sure that it is secured by a mortgage to an actual lot (i.e.: as shown in the re-plat"). The title insurance company should take care of all of this.

The deed did not reference the replat because it had not yet been recorded . It had been done , but sat on someone's desk for several months. Does this change things?

As AK said, you need to consult a lawyer here. A deed must have a legal description of the property being deeded. If the deed you issued covered the entire lot prior to the replat, then the buyer owns the entire lot. And the bank may have based its lending decision on the undivided size of the lot. So you could be in very hot water here.

Someone screwed up in not checking the legal description listed on the deed prior to the closing.