What is a "Vendor's Lien"?
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  1. #1
    Registered User Michelle68's Avatar
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    Default What is a "Vendor's Lien"?

    I have family who want my brother and I to sign off our right to heirship on a home which was owned jointly by my late father and my aunt. There is a part of the paperwork which states there is a "Vendor's Lien" in the amount of $20,000 in my grandmother's name. Is anyone familiar with this type of lien and what it's significance is?

    My brother and I considered signing this home over to our aunt who is a major drug addict because she also has a 13 year old daughter and we felt that at least this girl would have a place to live. Now we are being pushed by our grandmother (big-time enabler) to sign these papers ASAP and she recently let it slip that there are prospective buyers for the house. Needless to say, my brother and I are now considering going to a lawyer before we sign anything. Any help is greatly appreciated.



    --Michelle

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    Registered User Jamauk's Avatar
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    I'm not 100% sure, but I believe a vendor's lein means that some type of service person put a lein on the property. It could be for a remodel, new windows, etc...etc...

    Do you know, was any significant work done on the house?

    I would definately talk to an attorney before signing anything. You want to make sure you are protected as well as the 13 yo child.


  3. #3
    Registered User Michelle68's Avatar
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    Thanks, Jessica. That's what I also kind of thought it might be. The house is in a little town southeast of San Antonio and is only worth about $20,000, according to the appraisal district down there. It is on about an acre of land. From what my brother and husband tell me (they have both been to the house), it is an older home which is not in the greatest shape. There has been some work done on it by a friend of my aunt's to rehab the bathroom a bit. Both my aunt, her daughter and my dad were living there when he passed away.

    I am a bit puzzled as to why my grandmother is named on there as having a "vendor's lien" on the property. The only thing that I can figure was that both she and my father put up the money to buy the house a few years ago. The house was put in her name, but in November, 2007, before my dad died, she conveyed the house to my aunt and dad by Special Warranty Gift Deed. Maybe she's trying to recoup her money she put down on the house and make a profit on the sale? I don't know. I do know that my father expressly stated just before he died that he wanted to leave his part of the house to my brother and I because he didn't have anything else to give us. I feel like this side of our family is trying to mess us around. Unfortunately, this would be par for the course for these people.


    --Michelle

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    Registered User grneyegrl's Avatar
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    i wouldnt sign anything,even if everthing was lost...greedy people should get nothing...but i u could put all profits in an account for the daughter and you and your brother could control it i might consider it

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    Registered User Lady_V's Avatar
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    I did a quick peek for you and found you a few definitions... as well as the Texas Laws on liens

    Texas Laws

    Banking Dictionary: Vendor's Lien

    Seller's right to reclaim property sold to a buyer if the purchaser falls behind in payments, for example, a seller's lien on real estate sold through a Purchase Money Mortgage. Seller's liens are a carryover from common law and are relatively uncommon in the United States.

    Vendors Lien -- Also called purchase money mortgage. A seller's claim to property held by a buyer as collateral for a debt or charge.


    Hope that helps some. I think Moor is a real estate agent, and MrsMcD works at a bank. Maybe one of them can offer more insight.

  7. #6
    McD
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    Wish I could offer more advice but I keep myself as far away from lending as possible.

    I would consult a lawyer before doing ANYTHING.

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    Registered User Holly's Avatar
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    OK I have been through this.
    When my mom and dad died the house would be split 7 ways myself, 3 brothers, my sister and my oldest sister's 2 daughters.
    they knew it was suppose to go to me. they all had to sign off their claim or the house had to be sold and when all bills were paid what was left had to be split equally.
    I would talk to a lawyer because if they sell it you and your brother are intitled to your share of the proceeds.
    It can it very sticky and ugly.. ( all but one signed it over to me but my one niece couldn't because she was on welfare at the time and it was protencial income. We paid her but the county took it all )
    Took over 1 1/2 years to straighten out.
    Do nothing without a lawyer JMHO
    Last edited by Holly; 09-15-2008 at 10:24 AM.

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    Sounds like your grandmother wants to recoup the money she put up for the initial investment in the house. I guess she's be paid first if the house sold?

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    Super Moderator Darlene's Avatar
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    What's a Vender's Lien? It's short for consult an attorney because you never sign anything unless you know what your signing. Good luck!



    Last edited by Darlene; 09-15-2008 at 12:59 PM.

  11. #10
    Registered User Michelle68's Avatar
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    Thanks for all your advice and the information. We are definitely going to consult an attorney before we sign anything.



    --Michelle

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