title insurance

[rvnguy1]

I am having trouble attaining title insurance from our local title companies. I have a buyer for a small piece of property, cash buyer. He wants it to be insured. I did discover some errors in the past quit claim deeds which I cleared up with help from the previous owner(s) and the courthouse. I own the property free and clear.
My trouble is that the local titile companies refuse to do a title search or insure any property which was once owned by the fellow I purchased it from. From what I gather he has a history of errors and poor dealings. I can attest to this myself after spending hours and plenty of $$ re-recording incorrect deeds with the proper legal descriptons.
My quesion is what can I do? Are the title companies under any obligation to offer insurance on a piece of property that is clear? The prior, less desirable, owner is no longer involved and I have cleared up all title inconsistancies.
I live in Washington State and the property is in Franklin County, WA.
Thanks,
-Todd

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by rvnguy1:

I am having trouble attaining title insurance from our local title companies. I have a buyer for a small piece of property, cash buyer. He wants it to be insured. I did discover some errors in the past quit claim deeds which I cleared up with help from the previous owner(s) and the courthouse. I own the property free and clear.
My trouble is that the local titile companies refuse to do a title search or insure any property which was once owned by the fellow I purchased it from. From what I gather he has a history of errors and poor dealings. I can attest to this myself after spending hours and plenty of $$ re-recording incorrect deeds with the proper legal descriptons.
My quesion is what can I do? Are the title companies under any obligation to offer insurance on a piece of property that is clear? The prior, less desirable, owner is no longer involved and I have cleared up all title inconsistancies.
I live in Washington State and the property is in Franklin County, WA.
Thanks,
-Todd<HR></BLOCKQUOTE>

Title insurance companies are not required by law to insure title and can refuse to insure as they have done with you. A good analogy is if you have fire hazards in your home, an insurance company that provides fire insurance coverage can deny coverage. I suggest you hire a real estate attorney that can do a complete and thorough title search and advise you and the title company accordingly. Your attorney would have to satisfy the requirments set forth by the attorney for the title company before any title insurance will be issued.

 

[Tracey]

I can only come up with 2 options for you: find another title insurance company or see if you can convince the title company you'll sue them for unfair or deceptive practices. Definitely file a complaint wth the state insurance commissioner.

You have possible claims under subsections 1 (derauds lenders by refusing to insure ANY property once owned by X even when the title has been fully repaired), 2 (unfair to refuse to grant insurance to sellers just because X used to own property, when title has been repaired), 4 (false, deceptive & misleading to declare your property uninsurable when they know title has been repaired), 6 (omit making true entry that your property is fully insurable), 7 (making written statement that property is uninsurable when they know it's insurable). No guarantee that ANY of these will actually apply to the insurance co., but you might be able to rattle their cage enough to force them to come up with a legitimate reason not to issue the insurance (such as, X habitually sells property to more than one buyer & we end up in quiet title suits).

RCW 48.29.200
Prohibited practices.
It is a violation of this chapter for any title insurance company and title insurance agent in the conduct of the business of an escrow agent as defined in RCW 18.44.011 and exempt from licensing under RCW 18.44.021(6) to:

(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

(2) Directly or indirectly engage in any unfair or deceptive act or practice toward any person;

(3) Directly or indirectly obtain property by fraud or misrepresentation;

(4) Knowingly make, publish, or disseminate any false, deceptive, or misleading information in the conduct of the business of escrow, or relative to the business of escrow or relative to any person engaged therein;

(5) Knowingly receive or take possession for personal use of any property of any escrow business, other than in payment authorized by this chapter, and with intent to defraud, omit to make, or cause or direct to be made, a full and true entry thereof in the books and accounts of the title insurance company or title insurance agent;

(6) Make or concur in making any false entry, or omit or concur in omitting to make any material entry, in its books or accounts;

(7) Knowingly make or publish, or concur in making or publishing any written report, exhibit, or statement of its affairs or pecuniary condition containing any material statement which is false, or omit or concur in omitting any statement required by law to be contained therein;

(8) Willfully fail to make any proper entry in the books of the escrow business as required by law;

(9) Fail to disclose in a timely manner to the other officers, directors, controlling persons, or employees the receipt of service of a notice of an application for an injunction or other legal process affecting the property or business of a title insurance company or title insurance agent conducting an escrow business, including an order to cease and desist or other order of the insurance commissioner; or

(10) Fail to make any report or statement lawfully required by the insurance commissioner or other public official.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.