Full question:
Is it legal for a bank selling a foreclosed property to have an addendum that states the buyer is responsible for any monies in assesments, such as association fees on a townhome in arrears?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Minnesota
Answer:
A warranty deed makes certain guarantees that the grantor is transferring free and clear title. The warranties are stated in the deed, such as that the grantor is the lawful owner of the property at the time the deed is made and delivered and that the grantor has the right to convey the property. The grantor typically warrants that the property is free from all encumbrances or liens. However, a trustees deed makes no such assurances and conveys the property "as is".
A trustee's deed is issued subject to any other senior liens. A trustee's deed is not a warranty deed and does not convey clear and free title. Each potential buyer is responsible for conducting, at their own risk, independent inspections, investigations, inquires and due diligence concerning the property. For example, there might be senior liens on the property, physical or title defects to the property may exist, and you may have to evict the occupant.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
