What exactly does title insurance insure??

What is the name of your state?
New York
I have a problem where three seperate properties 1 condo and 2 garage spaces(in the same condo complex) were bundled up on the same schedule A. The garage spaces were paid for in cash and I have seperate deeds for both. Now at a refinance they are considering all three as one property. My lawyer told me there seems to be a problem with the title company. I will probably loose my rate, application fee, lawyers costs and the 1% I put down because I did not go through with the closing. What is my recourse? Is the title company liable for what I lost, not just for correcting the title? The bank ordered the title and apprisal (which I paid for) but did not see any of these items until the actual time of the closing.

[HomeGuru]

[quote]Originally posted by gajw1
[b]What is the name of your state?
New York
I have a problem where three seperate properties 1 condo and 2 garage spaces(in the same condo complex) were bundled up on the same schedule A. The garage spaces were paid for in cash and I have seperate deeds for both. Now at a refinance they are considering all three as one property. My lawyer told me there seems to be a problem with the title company. I will probably loose my rate, application fee, lawyers costs and the 1% I put down because I did not go through with the closing. What is my recourse? Is the title company liable for what I lost, not just for correcting the title? The bank ordered the title and apprisal (which I paid for) but did not see any of these items until the actual time of the closing.

**A: because you have separate deeds, the 2 garage spaces are legal condo units, therefore there can be a mortgage on each property. Because all three are listed on the legal description as an exhibit on your deed, the mortgage actually secures all 3 condo units.