Dec 18, 2024
Denny Dorcey of Oakland Park, Florida, can fix nearly anything.
He's rebuilt cars destined for the junkyard and even transformed his foreclosure home, purchased ten years ago, into a showpiece. He added custom cabinets reminiscent of the ones in The Adventures of Ozzie and Harriet and keeps his 1970s oven in perfect working order.
Advertisement
But a recent letter from the city of Oakland Park presented a problem he couldn’t fix.
“The letter said that I owe the city over $1 million for code violation fines from the time before I bought the house,” Dorcey told 7News Miami reporter Patrick Fraser.
According to Dorcey, the letter said he was responsible for $1,097,400 in fines tied to four minor violations committed by the previous owner. These petty violations — such as overgrown weeds and trash in the carport — had grown over the years due to accumulated penalties. Now Dorcey on the hook.
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.
Advertisement
“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.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
How 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.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
