Title Insurance

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

I recently purchased a home in Maryland. I have been recently notified that the title company failed to find and disclose a tax lien against the property and open building code violations that were on file with the local municipal. According to the local municipal the house is uninhabitable, an inspection of the property by a city official reveal conditions in need of repair and work that had been done that the original owner did not obtain building permits to do. All of these items were part of public record prior to my settlement. I am being told I must tear out walls etc...to have the work done up to code standards. I am concerned because if the title company had revealed these open building violations when the title search was done, I would have been able to force the owner to remedy this situation. Can anyone tell me if they think this might be a valid claim against a home owner's title insurance policy? I am thinking of pursuing it with them. Also if it is a good case do you think the title company will pay for the lien and necessary repairs to bring the house up to code to remove the building code violation, or would they just pay off the mortgage and take possession of the house? Please help...I am at my wits end trying to hang on in MD.....Thank you.

What is the name of your state (MD)

With the exception of the tax lien, none of your problems have to do with the title and will not be covered. They should take care of getting the tax lien removed.

FlyingRon said:

With the exception of the tax lien, none of your problems have to do with the title and will not be covered. They should take care of getting the tax lien removed.

Click to expand...

Thank you for your reply, Do you think the company that handled the settlement and performed the title search could be held responsible in a suit for failure to find and disclose these building violations?

Building code violations have nothing to do with ownership or title issues. Title searches don't look for them, title insurance does warranty them.