What to do if I bought a house and recorded the deed but learned later that there is an option agreement that was recorded over a month ago?

The deed was sent to me and I personally took it to recorder’s office and received the warranty deed back. It was recorded. I received a call from the person who recorded the option agreement and was told that he owned the property because he recorded the agreement before I recorded the general warranty deed. I’m confused. Since I received a copy of the warranty deed recorded by the county on this month. Who actually has all rights to property?

Asked on July 10, 2012 under Real Estate Law, Indiana


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the option to buy the home that you actually bought was recorded before you got legal title to the property that you are writing about, you were deemed under the laws of all states in this country to have been on constructive notice of the option and took legal title to the property subject to it.

If the seller did not disclose the option agreement to you before close and you did not obtain a preliminary report as to chain of title that showed this option, you have issues with the person holding the option. I suggest that you consult with a real estate attorney about the matter you have written about.

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