Anderson, SC asked in Real Estate Law and Collections for Tennessee

Q: When is a quit claim deed a legal document . When grantor signs and notorized or when recorded with county ? Roane Tn.

I bought a property at auction. The Grantor used a Quit Claim Deed. There were no liens when deed was signed. Since then I have found that the property is involved with an HOA. The HOA placed a lien after the deed was signed, but not recorded with county until later 8 days after signed over. Wouldn't the grantor be responsibile for debt because lien not entered until after signing over.

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2 Lawyer Answers
Ben F Meek III
Ben F Meek III
Answered

A: There's a lot to unpack in your question. A validly executed Quitclaim Deed is effective to convey real property when signed and delivered to the Grantee. (If it's not notarized, it isn't recordable.) Typically, auction sales sell real property "As Is" subject to any and all liens, encumbrances, defects in structures, problems with boundaries, and defects in title, etc. You'll need to refer to the terms of your auction to see if the terms were different. A Quitclaim Deed contains no warranties of title and only conveys whatever title the Grantor has, if any. A lien against real estate has to be "perfected" by recording a lien notice or some other legal instrument that creates or notifies the public of the lien. The HOA may have perfected their lien against your property before you recorded your QCD. However, they may have the right to assert the lien even after you recorded the deed, if HOA dues were previously unpaid, for example.

Buying real estate is full of risks. Buying real estate at auction removes the time and opportunity to discover major problems and to require removal of lien claims before paying your money and taking title. There may be problems with the HOA's attempt to assert the lien, or there may have been irregularities in the auction process, or there may be other possible remedies available to you. You should go see an experienced real estate lawyer in the state where the property is. Many offer free initial consultations. Good luck.

PS: My comments here are for general information only and are not legal advice about your situation or the applicability of any particular law. They also do not create an attorney-client relationship between us. Consult a licensed attorney in your state for legal advice about your specific issues under the applicable law.

Anthony M. Avery
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Answered
  • Knoxville, TN
  • Licensed in Tennessee

A: The problem is that HOA dues are a lien against the land, not a personal obligation of the owner. They are in rem and there are probably some type of restrictions or a master deed in your chain of title which authorize the HOA's existence and authority to exact dues. You should have performed a title search on the property prior to the auction. The restrictions may even be in the legal description of your deed. And no, it is not the grantor's debt, but goes against the land whereby the HOA can execute its lien upon it. You might get the HOA to compromise the lien amount.

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