Can the city hold him responsible for these fines?
Dorcey said that when he bought the foreclosure, he used a title company that assured him there were no liens or fines on the property. He also claimed the city never mentioned the fines until now.
“They were clearing our old files and they came across my file and that’s how this started.” Dorcey explained.
After receiving the letter, Dorcey contacted the city, explaining he couldn't afford to pay more than a million dollars in fines. A city official suggested he negotiate a settlement with their collection agency, but Dorcey wasn't having it. Instead, he contacted Help Me Howard with Patrick Fraser from 7News Miami to ask: Can the city legally do this?
According to 7News legal expert Howard Finkelstein the answer is nuanced.
“Yes, they can,” he said. “Government agencies do not have to notify a new owner about the fines, allowing them to grow.
“But in this case, the city cannot do this to Dorcey because he bought the property in foreclosure and that wiped out any existing liens and fines that the city had.”
Thankfully, 7News reported that the city removed the fines after reporter Patrick Fraser spoke with city officials.
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Learn MoreHow to protect yourself from property fines
While Dorcey was fortunate to avoid paying the hefty fines, his case raises some uncomfortable questions for homebuyers. How can you ensure you won’t be held accountable for someone else’s unpaid fines?
Here are some steps to protect yourself:
- 1. Conduct a lien search before buying a property: Request a lien search from your county clerk’s office or local property records office. This search hould reveal any unpaid fines, tax liens or other legal claims against the property. Additionally, contact the municipal code enforcement or city attorney’s office to check for any unresolved violations not listed in public records.
- 2. Hire a title company and obtain title insurance: A title company can thoroughly investigate the property’s legal history. Title insurance provides added protection against hidden issues, including overlooked fines or liens.
- 3. Ask for full disclosure: Request a detailed report on any violations or legal matters tied to the property. While foreclosures often clear some fines, as in Dorcey’s case, this isn’t guaranteed.
- 4. Seek legal advice if necessary: If you discover potential issues or receive notices like Dorcey did, consult a legal expert to determine your rights.
As for Dorcey, his story has a happy ending. After Fraser intervened, the city moved quickly. They reviewed the case and discovered they'd never been notified of the foreclosure that cleared the fines. They promptly wiped out the $1 million balance.
“Without you guys, they would have destroyed my life completely. There’s no doubt in my mind.” Dorcey told 7News Miami.
His case highlights the importance of due diligence in real estate transactions. Avoid landing in a similar situation by conducting a full lien search, consulting local offices and seeking professional assistance. With the right precautions, you can protect yourself from unexpected liabilities.
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