Quick legal question

[Saltaholic]

My parents bought a house on a few acres a year ago and the house came with a shed in backyard. Now a year later a collection agency shows up saying that shed was a “lease to own” and they are repossessing it this week. Is this legal? Can anything be done?

Thx

[Olphart]

Here's a quick answer. Parents should review the paperwork, contact the realtor and title company, and then consult with their attorney if the shed was part of the deal.

[BigWes]

Tell the collections agency to call the title company.

[JayB]

Shorter answer is, ask GraysonHogs.

[Saltaholic]

Title company says it was an oversight on their part and they didn’t realize there was a shed, they said if it’s repossessed a claim can be filed but not guaranteed to be approved

[jlp04c]

Oversights sound like fault...

[bowhuntertex]

Title company says it was an oversight on their part and they didn’t realize there was a shed, they said if it’s repossessed a claim can be filed but not guaranteed to be approved

Does the paperwork your parents signed say anything about the shed conveying with the property? If so then the title company will have to suck it up and pay the balance on the shed since it was their screw up. If it isn't in the paperwork then I don't know how that can be handled. ***FYI-I am not a lawyer***

[meltingfeather]

First you need for them to provide you documentation/evidence of their right to the property, which would include the fully executed lease-to-own agreement. Also put them on notice that the house has been sold and that you will ask for a clear and definite time allowance to sort out the legal issues once you make the next call.
The next call should be to the title company to explain the situation.
The better you or your parents can understand the particulars of what's happening, the better positioned you will be to protect their rights and property.
I would consult with an attorney and review your title policy to see if it provides for legal expenses associated with a valid title claim.

[AgHntr10]

I am no expert so take my opinion for what its worth(nothing). A portable shed on skids or blocks is not considered real property so unless it was explicitly written in the contract as being conveyed then your parents don't have any re-course.

If I really wanted the shed I would offer a couple hundred bucks to the company and see what they say. They might be glad to have something for it and not have to move it.

[meltingfeather]

Title company says it was an oversight on their part and they didn’t realize there was a shed, they said if it’s repossessed a claim can be filed but not guaranteed to be approved

I would notify them that you are making a title claim and see if you can talk to a decision maker that will see the wisdom of paying off the shed rather than having to pay for a new one.

[AgHntr10]

If the shed isn't shown on the survey or the contract how was the title company to know it was included?

[35remington]

If I really wanted the shed I would offer a couple hundred bucks to the company and see what they say. They might be glad to have something for it and not have to move it.

That's a purdy good idea.

Unless the shed is a fixture, it's probably just abandoned personal property, and therefore wasn't part of the real estate transaction.

Jmo.

[dustoffer]

Neighbor behind me gave me a propane tank that was on the property when they bought (pool heater) but they didn't want. I hauled it to the lease to use. When the gas company came looking for it, I told them where they could pick it up and surprisingly, they never came and got it.

Don't think this would apply with a shed. IMO the title company/survey folks are the ones to go after.

[batmaninja]

Prob over thinking this but. It doesnt sound like the people who your parents bought from actually owned the shed, there was a lien on it from whomever is trying to take it now since it wasnt paid off. The debt collector wants to take the shed back so they can sell it and make their money back. So it kind of comes down to how much is still owned on the shed. Seems odd it took a year for the debt collector to come collect, unless the previous owners were still paying.

[The Crippler]

If the shed isn't shown on the survey or the contract how was the title company to know it was included?

This...I'm sure the shed people didn't file a lien or their "rent to own contract" in the county official public records either. The shed is likely not attached (in the legal sense) to the real property. If it was a car, lawnmower, swing set, etc. that the previous owners hadn't paid off and left on the property you wouldn't have a basis for a claim against your title policy when those items got repossessed.