When Hollie Brown decided to sell her house, she chose to look to an investor. According to her, the house needed a bit of work, and she figured someone like that would be more interested in taking on the project.
However, Brown told Fox 4 News that instead she was contacted by a company called Legacy Home Investments, which was owned by Kuot Martin. Brown said she and Martin went back and forth about listing the property, and Martin produced a contract that he pressured Brown into signing immediately.
But just days after she signed, she had a change of heart, deciding to go a different route. That’s when Brown says she discovered that Martin had filed paperwork claiming an interest in the home, which essentially served as a lien, preventing Brown from selling.
Fox 4 News says that this isn’t an uncommon practice, and some homeowners have been forced to pay tens of thousands of dollars to have the liens removed. Here’s what we know.
Brown Got Nervous After Seeing Photos of Her Home Posted Online
During their initial meetings, things seemed like they would work out for Brown, who was selling her home to give herself and her children a change of pace. “He offered me $105,000 for the house. He said that I can only get you that much if you sign the contract now,” she recalled. The contract contained details about an upfront payment, which Martin said Brown would receive within 10 days of signing.
However, prior to the payment arriving, she told Fox 4 News that she saw photos of her house on social media, which Martin posted in an attempt to find a new buyer. Worried about how things were happening, Brown backed out of the contract.
But when she finally found someone else to sell to, she discovered that she couldn’t.
Martin Put a Lien on Brown’s House Without Her Knowing
It sounds like all Martin needed to do was pay a $24 fee, and he was able to file an “affidavit of equitable interest” with the county, which stakes a claim in the property while also preventing the homeowner from being able to sell it.
Brown says she started to panic and worried that she would never be able to sell her house. According to the outlet, this is actually a perfectly legal loophole that exists in multiple states in the U.S., including Kansas and Missouri. But when Brown wanted to see what her recourse was, she learned that she would have to pay to get any help.
“I couldn’t pay my lawyer,” she recalled. “He charges $375 an hour.” Instead, she reached out to her state legislator, asking Joe Nicola to get involved, which he did, but to the tune of $3,000. That’s what Martin accepted to release the lien after initially demanding $15,000. Now, Nicola says he’s working on getting legislation passed to prevent things like this from happening to other homeowners.
According to USLegalForms.com, multiple states have some form of equitable interest rules on their books. And while the guidelines vary state-by-state, it’s important to research the rules in your area (and how to spot red flags) so you can learn how to protect yourself in the event you end up in a situation like Brown did before it happens.