Full question:
A friend of mine filed for bankruptcy last fall. Everything was filed and completed. Early this year she got a call from a friend who said some vacant land she owned was still in her name and all she needed to do was pay up on the loan to bring it up to current status and the land would still be hers. She checked with the bank and they confirmed that she could reclaim the property if she just paid the past due amount and kept the loan current. She paid up, started making payments again and put the property up for sale with a Realtor. The property sold and then she found out the same bank also had a lien on the property for more than she would get in the sale.Is there a requirement for the bank to disclose they have a lien on property they also hold a mortgage on? We were led to believe it was clear and the lien was not identified by the listing Realtor either. I believe we were both misled by the bank and now are out an additional $40,000. Is there a legal way to reclaim this money?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Alaska
Answer:
The answer will depend on the specific facts of the case, such as whether a warranty deed was used and if any statements were made about liens on the property. If a quit claim deed was used, the buyer is responsible for conducting a title search to check for liens or hiring a title insurance company for this purpose.
For a claim of fraud to be valid, a misrepresentation or omission must relate to an existing fact, not just a future promise, unless it was made without intent to perform. Mere opinions cannot form the basis of fraud unless the person expressing the opinion has exclusive knowledge of facts that contradict that opinion. The misrepresentation must be significant to the decision being made.
Additionally, it must be shown that the reliance on the misrepresentation was reasonable and that the truth could not have been discovered through reasonable inquiry. To prove fraud, it must be established that the misrepresentation was made knowingly and intentionally, not by mistake or negligence. The plaintiff must demonstrate that they relied on the misrepresentation and suffered damages as a result. Damages may include punitive damages if the fraud was malicious.
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.