Statue of limitations and real estate

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Latest post 12-01-2006 10:43 AM by RLS 2091. 9 replies.
  • 11-29-2006 10:30 AM

    Statue of limitations and real estate

    Do the Laws (federal and State (Georgia)) of "Statue of Limitation" apply to Real Estate contracts?

    Example; I loaned a relative money (in the thousands) drawing up a contract that is a standard second mortgage/promissory note against his home for 15 years, they quite paying me after 2 years but I do nothing about it for 7 years does the Statue of limitations prevent me from collecting? Does the Statue of Limitations effect our promissory note in any way?

    The relative is claiming I can not collect and they are planning to sell their Home and only pay the primary lender, can they do that?
  • 11-29-2006 10:43 AM In reply to

    re: Statue of limitations and real estate

    Did you record your 2nd mortgage/promissory note with the Recorder's office? Not sure why you did nothing for 7 years.

    These web sites may help you:
  • 11-29-2006 11:14 AM In reply to

    • Drew
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,585

    re: Statue of limitations and real estate

    Laymans suggestions :

    #1 Have you properly recorded your note against the property--if not why not? In not, If the note is in recordable format get it recorded even NOW. Proper recording may essentail to your having leverge. Very essential! Confirm it was done or get it done!

    #2 True there is a statutue of limitation of 6 years for most written contract matters in GA but it is not a bar to seeking collection it is merely an affirmative defense the other side could raise when it gets to trial--in the meantime if you play your cards right few buyers or title firms will touch the place unless party squares up with you.

    #2.1 A well drafted Note in GA would have in its body language as to the contract being "under seal" its extremely common in a well drafted note--but we have no clue if you rnote was well drafted--if its "under seal" then the likley SOL is extended to 20 years, not a more 6!

    #2.2 You may find to to you leverage advantage to begin a foreclosure action to force payment and file a lis pendens against the title. This will royally gum up the efforts to sell it. Time is critical--if they sell it first to some unsuspecting buyer your leverage may go down the drain!

    #3 If all this is Greek to you, unless you want to kiss your monies goodbye, I think you want to be talking with a good local attorney experienced with RE note issues --ask up front. A good attorney may be able to buffalo your adversary.

  • 11-29-2006 11:55 AM In reply to

    re: Statue of limitations and real estate

    If the relevant statute in GA is 6 years, that's 6 years from the date he stopped paying.

    In any event, it's critical that you have a recorded trust-mortgage on the property. No one in their right mind would buy the property (and no average lender would loan money for a place) with an existing second mortgage. A recorded mortgage will prevent its sale (just as it won't be sold without the first mortgage being paid).

    Of course, if the place isn't really worth as much as you think, it may be that only the first mortgage will be able to be satisfied. (But this doesn't mean you don't have time to sue on the promissory note.)

    You need to discuss these issues with a local real estate attorney. If you didn't have one when you did this, that was a bad idea. If you did have an attorney and didn't come out of the transaction knowing you had a security interest in the property, I wouldn't be using that attorney again.

  • 11-29-2006 12:34 PM In reply to

    Sad [:(] re: Statue of limitations and real estate

    I believe the Attorney did at the time it was all drawn up.

    Family, what one does for family in hard times.

    Thank you for your time and trouble getting this information.
  • 11-29-2006 12:38 PM In reply to

    Sad [:(] re: Statue of limitations and real estate

    Drew, All three responses where of great help but I have to say yours was very detailed and easy on the Layman’s eyes.

    Thank you for your time and trouble!
  • 11-29-2006 12:40 PM In reply to

    Sad [:(] re: Statue of limitations and real estate

    Fxston, Thank you for your time and trouble in responding to my quest for help.
  • 11-29-2006 12:42 PM In reply to

    Sad [:(] re: Statue of limitations and real estate

    Sorry Drew my reply to your post posted at the bottom instead of under yours, Thank you again.
  • 11-29-2006 2:18 PM In reply to

    re: Statue of limitations and real estate

    "I believe the Attorney did at the time it was all drawn up."

    Believing is not knowing.

    Your county recorder's office might have a website where you can look up documents on line and possibly print out a copy.

    Look for your name and the other party's name around the time you loaned the money.

    You'll know pretty quick if the document was recorded or not.

    If the county recorder doesn't have that available on line, pay a visit the office and do it.

    The copy you get there will have the recorder's stamp and the document number.

    That may give you some leverage.
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  • 12-01-2006 10:43 AM In reply to

    Feedback [*=*] re: Statue of limitations and real estate has a Realestate deed index.
    You may be able to locate your security deed at this address
    You will be able to find the deed book and page location here. For a fee you can view and download or simply go to the courthouse and copy.
    Depending on the county it may or may-not be located here. If it was recorded!
    Feel free to email me and I will assist you in locating it on line if you have problems. I am a Ga Land Surveyor and use this website often.
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