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I am considering a purchasing a home that is
Sent to Legal Experts May 05 02:35 PM

I am considering a purchasing a home that is foreclosed and renting it with sale of it later. The seller has a contract that reads " Grantor covenants that it is seized and possessed of the said land and has a right to convey it, and warrants the title against the lawful claims of all persons claiming by, through and under it, but not further otherwise." I called the courthouse and find that the previous owners(before the seller now) owed 85,000 in liens that can be used if the previous owners sell land in this county. If I buy this house, am I responsible for the previous owners debts?

Customer (name blocked for privacy)
Status:  Closed   Value: $15
Answer
May 5 4:53 PM (2 hours and 17 minutes and 51 seconds later)
         
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Dear Customer (name blocked for privacy)

No. You would not be responsible for the debts because the property would be transferred into you name only and would not have the party that owes the 85,000 on it. the portion of the provision that states "...but not further otherwise." means that this seller is not warranting the title against any debts that you currently have or may incur after you make the purchase - in the future, only the past. The seller is only guaranteeing that it is a clear title up until the day it changes hands to a new owner; so you are being guaranteed a clear title. Apparently, the seller is not the person who owes the money, but rather the bank/lender. If it is the person who owes the debt is the seller, believe me those debts will be paid from any profit they make on the sale.

But the upshot is you would not be responsible for those debts.

Best of success to you with this endeavor

 

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