Little Bo-Peep and Mistress Mary were best friends. When Bo-Peep’s sheep ran off, she sold her cottage to Mary for $100,000 in a cash deal, done quickly so Bo-Peep could go find her sheep, and Mary could plant her garden. Silver bells and cockleshells were just coming up when Mistress Mary was served a Lis Pendens. She was quite contrary then! What is a little real estate between friends? Since Bo-Peep had owned the place for years and they were such good friends, Mistress Mary had bought it with a Quit Claim Deed, paid cash, and not bothered with title insurance or even a title search. Turns out the lawsuit was from two owners ago; Bo Peep did not even know about the problem. Mistress Mary had taken on the $100,000 risk at the purchase; furthermore, without title insurance, she did not have a policy to financially protect her investment. It was such a mess not even Mother Goose could sort it out. If only Mistress Mary had had a Warranty Deed, at least she could have sued her friend, Bo-Peep! Do not let friendship pull the wool over your eyes. There are certain things you can do to […]
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