27 Aug CASE STUDY 2 : Cloudy History Made Clear
After buying a property from an “old friend” of his in a deal that included money, trailers, and repayment of the sellers old debts, a man who we will call Mr. Right was then challenged by his “old friend” who we will call Mr. Wrong. Mr. Wrong said he never agreed to the deal and the property was still his, after receiving his consideration for the deal. Mr. Right was later unhappy because he was unable to borrow against, improve or even sell the property because the contested sale to him was challenged by Mr. Wrong. Mr. Wrong claimed he never signed the deed and he was not present when the “fraudulent deed” was created and recorded. A title report was furnished to Mr. Right by a title company and resulted in a title cloud. A title cloud is when something in the title chain of ownership of a property is questionable and causes title insurance companies to refuse to insure the sale unless that cloud is removed, resolved, or ordered upon by a judge. Mr. Right came to ARP with a big mess. ARP spent considerable time and resources to query the notary who signed the deed where Mr. Wrong sold to Mr. Right. Through its investigation ARP later discovered that video footage existed that showed Mr. Wrong entering the lobby of the notary, his signature was left in the notary book there, and in an earlier Justice of the Peace hearing transcription Mr. Wrong admitted that it was in fact him who signed the deed. This was sufficient evidence to provide cure to the title cloud. ARP was able to provide sufficient evidence that Mr. Wrong was wrong and Mr. Right was right, therefore, Mr. Right the rightful owner of the property, thereby proving up the title chain was good. Mr. Right’s problem was solved and Mr. Wrong, well he was just wrong.