Property With Lien Sold With Clear Title

[pemmer]

What is the name of your state (only U.S. law)? Idaho

We placed a real estate lien against a property from a legal judgement for $6000. A year later the owner sold the property using a warranty deed with title insurance.

Do I have a claim against the title company who issued the title insurance or do I have to sue the new owners who would then be indemnified by the title company?
Thanks in advance for any advice
Pem

 

[justalayman]

or do I have to sue the new owners who would then be indemnified by the title company?

the insurance company probably should not have issued the insurance but since they did, as you suggested, their liability is limited to indemnify the policy holders against any covered losses.

your action would not be against the insurance company.

a question to you:

how do you now the property was sold with a clear title. A buyer can accept a property with a lien in place if they want to.

 

[pemmer]

Clear Title

Clear title was assumed because the title company issued a title insurance policy on the property. Even if the buyer knew of the lien, why would a title company issue a policy? It appears that the title company didn't do their due diligence but we don't have first hand knowledge of how the transaction actually went down.

The lien has never been released and the property sold with a title policy. Is there a case here or are we just out of luck?

 

[nextwife]

Have you done a search of the record to verify it was properly recorded and attached to the real estate at the time it was recorded? If it was, get an attorney and have him go after the claim.

 

[justalayman]

Even if the buyer knew of the lien, why would a title company issue a policy?

the insurance company could have excepted any coverage for the lien.
If the buyer was still willing to buy the property with that exception, there is nothing to stop them.

as nextwife alluded to: maybe the lien did not show up for some reason as well.

You just don't have quite enough info to really know what has happened here.

 

[latigo]

Very simple. Just initiate the necessary post judgment processes under your state to foreclose your judgment lien.

 

[nextwife]

Poster: do you know for certain to WHOM title was vested at the time the judgment was recorded?

 

[pemmer]

The lien was recorded correctly; however, the lien was against the individual for whom the judgement was against and the property was titled to him in the form of a trust.

 

[nextwife]

Then the party in title was not the same as the party against whom the lien was filed. A trust for the benefit of someone is not the same entity as is they, personally.