The Georgia Court of Appeals unanimously affirmed a trial court judgment in favor of an out-of-state real estate investment entity that bought a property at foreclosure. Winter Capriola Zenner (WCZ) Managing Partner Kelsey Grodzicki and Associate Kaylor Sexton represented the client. The appellate court upheld the reformation of deeds from a 2018 sale to cover the full 8.25-acre property, including the one-acre parcel where the house sits. The court rejected all three of the property owner’s arguments on appeal.
Court Upholds Deed Reformation After Foreclosure
The dispute arose from a 2018 real estate transaction in which the warranty deed and security deed described 7.25 acres but omitted an adjoining one-acre parcel where the property’s house was located.
After acquiring the security deed through an assignment and foreclosing on the 7.25-acre property, WCZ’s client filed suit to correct the deeds to reflect the full 8.25 acres.
The trial court found sufficient evidence that the deeds did not reflect the intended transaction and reformed them to include the entire 8.25 acres. The Court of Appeals agreed, finding the record supported the trial court’s conclusion that the parties had made a mutual mistake. Although the seller testified that only 7.25 acres were intended to be sold, the conflicting testimony did not automatically defeat the claim.
The court cited documentary evidence that included:
- The purchase agreement and the terms of the transaction.
- Lender records, including the site plan and construction costs.
- Title insurance documentation covering the full 8.25 acres.
- The history of combining the two parcels.
The Court of Appeals also rejected the property owner’s arguments on two other issues:
- Jury trial: Deed reformation is an equitable claim, and Georgia law does not provide a right to a jury trial in equity cases. A judge may use an advisory jury but is not required to do so.
- Georgia business registration: Under the circumstances, the out-of-state client could pursue the action without a Georgia certificate of authority. The property owner’s separate standing argument was waived because it was not raised at trial.
The Court of Appeals affirmed the trial court’s judgment on all three appellate issues.
This decision illustrates how discrepancies in property legal descriptions can lead to complex litigation, particularly when real estate is financed, transferred, or acquired through foreclosure. For real estate investors, lenders, servicers, and title professionals, careful review of deeds and related transaction records can help identify potential title issues and inform decisions about available legal remedies.
Georgia Real Estate Law and Litigation Attorneys
Winter Capriola Zenner represents real estate investors, property owners, lenders, businesses, and other clients in real estate transactions and complex property disputes throughout Georgia. The firm’s Real Estate Law practice advises clients on property acquisitions, financing, and transactions, while its Real Estate Litigation practice handles disputes involving property rights, deed reformation, title issues, and other complex real estate matters.
WCZ Managing Partner Kelsey Grodzicki brings extensive litigation experience to complex real estate matters, having litigated hundreds of cases in state and federal courts. He authored the LexisNexis Practice Guide: Georgia Real Estate Litigation and contributes real estate articles and practice notes to LexisNexis Practical Guidance, helping other legal professionals navigate complex legal issues. Kelsey also serves on the Executive Committee of the State Bar of Georgia’s Real Property Law Section, is actively involved in the Atlanta Bar Association’s real estate community, and participates in the National Caucus of Title Insurance Litigators. Kaylor Sexton, WCZ Associate, worked alongside Kelsey in representing the client through the trial court proceedings and appeal.
For Georgia real estate investors, lenders, property owners, and businesses facing deed disputes, title issues, or other complex property litigation, Winter Capriola Zenner provides experienced legal counsel focused on protecting clients’ interests and resolving disputes effectively.