Missed Cloud On Title
Has anyone ever bought a property, bought title insurance, then sold the property and found out right before closing that you did not have a good title? The closing is haulted, lender is scared off, etc. I'm stuck with a property, a balloon note due, and do not know what to do. Only thing I know of is to sue the title company and closing attorney which will not satisfy my balloon. Title problem will be cleared up I'm told, but I'm in a mess. Any suggestions?
Terry
P.S. Need a good lawyer in Alabama. My real estate attorney was the one who closed the property and didn't catch the title problem.
I'd be on the pjone to the title ins. company as soon as possible, the attorney should have E&O insurance and if he is a real estate attorney worth his salt he should help out with the note until title is cleared. Bad advertisement is the last thing he needs.
every title company i've seen/used uses a quote on thier report (if you got a copy of it) or on thier invoice to the effect - liability herein is limited to the cost of the search. basically they're only liable for what you paid for the report - $250 or so. BUT, they will research it and find the mistake in thier chain of title for free if you point it out to them. then probably fire the person who did that search, but that's another story. just contact them and question the error and have them fax the new title to the appropriate persons (yourself included). this shouldn't be a prob. they guarantee a correct search from the "cover date" or "effective date" that they list on the search - ie., covers 3/1/99 to 3/12/04.
If you have title insurance which it sounds like you do then that would protect you. If the title company missed the problem then they would have to fix it. That is the whole reason you paid for the title insurance.
Mike