Can the consideration in a real property transaction be money that was transferred to the seller years ago?

Asked over 1 year ago - Cutler Bay, FL

There was a deed in 2002 that purportedly transferred real property to a buyer. The buyer was an LLC which appears to have been owned by a single person. The buyer paid for the property. Then in 2004, the validity of the 2002 deed was questioned, and the seller executed a new deed to a natural person who was purportedly the owner of the LLC. The 2004 deed said that the property was transferred for "$10 and good and valuable consideration", but there is no evidence of any consideration except the money previously paid in 2002. I say that the 2004 deed is void, because of lack of consideration. Am I right on this?

Additional information

Thank you to all who answered. To Mr. Russo, the 2002 deed was a warranty deed; the 2004 deed was a quitclaim deed. I don't know the reasons why the 2002 deed was questioned, but the LLC was in administrative dissolution when the property was deeded to it in 2002, and there were no articles of dissolution on record.

Attorney answers (3)

  1. Carol Anne Johnson

    Contributor Level 18

    2

    Lawyers agree

    Answered . The answer to your question is "probably not." If you are asking just out of curiosity, hopefully this satisfies. However, as mentioned by my esteemed colleagues, if you have a horse in the race, you will need to contact a competent real estate attorney in your area to review the deeds and advise you as to your options. What occurred was most likely a deed correction to repair an anomaly in the 2002 deed. But, it is impossible to say without a review of the recorded documents.

    Information provided here is anecdotal and should not be relied upon or considered legal advice. Every matter is... more
  2. Marshall C Deason Jr.

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . From you posting, it is clear that there is a title problem that needs to be resolved. To resolve the problem, a lawyer would have to examine the instruments involved and discuss the situation with the people involved. It is possible, but unlikely that there would be a failure of consideration in the 2004 deed. Rather than trying to get an answer by posting limited facts on an online legal forum, you should consult an experienced real estate lawyer in your area.

    Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does... more
  3. Rex Edward Russo

    Pro

    Contributor Level 13

    Answered . Why was the 2002 deed questioned in 2004? Was it because the LLC had been dissolved before the transfer? The 2004 deed might be a corrective deed. Was the 2004 deed a warranty deed or quit claim deed? As stated by the other attorney, the 2004 deed may or may not be void for lack of consideration. It will depend on a review of many more facts. Why is it important to you that the 2004 deed is void?

    The law is complicated and although the facts expressed may seem to be all that is relevant, there may be many... more

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