Auction home seller refused to transfer tittle and want to cancel the transaction after it is fully remodeled.

Asked almost 2 years ago - Augusta, GA

I purchased a home from ( I paid in full and seller gave me the code of lock. I started to work on it but 3 months later I received mail from Richmond county which shows I am not the owner of this home for tax purpose. (It went to tax sale during auction period). I contacted Richmond county and was told the reasonable solution is that seller should redeem it and then transfer title. But seller refused to do so and let me buy it back with 120% of tax sale price. They called it as tax and let me pay this tax to a private account. I said I should pay tax to government only. Last Oct, seller told me they will cancel the transaction and refund me the purchase price (only small portion of my cost on it so I refused).

Additional information

I purchased a home, not the chance to buy it for 120% of fair market price.

I contacted website for seller's violation of the policy of fully disclosure (lost ownership during auction period and refused to redeem it, so seller is selling something he did not own) and basic rule of auction (all sales are final), but website refused to suspend seller's account as the policy.

I think the seller involved in fraud and website supported the fraud. I have filed internet fraudulent via IC3 (internet crime complain center)

Attorney answers (3)

  1. Daniel Ellis Rice

    Contributor Level 18

    Answered . I advise possibly contacting the law firm, Ward & Spires, in Augusta, Ga, ph # 877-227-2152. Good luck.

  2. Randall M. Lipshutz

    Contributor Level 16

    Answered . You are going to need to hire an attorney to straighten this out. If during the auction period the property was sold for taxes, assuming the auction was proper, you still acquired an interest in the property. The seller should have given you a deed, and you need to pursue that. As for the tax sale, the state law is that the purchaser at the tax sale has to allow redemption of the property, but they are entitled to 120% of the price paid at the tax sale for the redemption. But that is 120% of the tax sale price, not of the value of the property. Further, there may be excess sale proceeds sitting in the government's account that you could claim once you redeem the property and immediately get some of the redemption price back. As I indicated, dealing with properties at tax sales and coupled with the purchase at the auction is complicated enough that you should hire an attorney to sort through the details.

    This answer is for general purposes only, and it does not create an attorney-client relationship.
  3. Daliah Brill

    Contributor Level 8

    Answered . You need to consult with an attorney. Make sure to let the attorney know about the auction. The situation is further complicated by the tax sale. Did you receive a deed? Do you have any written agreements?

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