Please some advice....

[michael5150]

What is the name of your state? Maryland

I hope someone out their can help me....

Here is the Timeline:

July 12th of 2004 closed on a land lot. Purchase price $9000

July 6th of 2004 Title search performed. Came back clean (have letter stating such, no title insurance purchased)

June 28th 2004, a $50,000 lien was placed on the land by a company that the seller worked for. They will not release this lien.

Given that the title search document showing clear title is dated July 6th, they should have picked up the lien and did not.

Questions:
How do i go about suing the title company?
Is that what I should do?
How can the lien be cleared? Does the title company have to pay the $50,000?
Can the lien only be collected if the land is sold? What if I sell the land for $30,000? Are they still owed $20,000?

I'm not sure where to start, please help...

Thanks

Michael

 

[PghREA]

How do i go about suing the title company?
Is that what I should do?

There is not much you can do with the title company since you did not purchase the insurance.


How can the lien be cleared? Does the title company have to pay the $50,000?
Can the lien only be collected if the land is sold? What if I sell the land for $30,000? Are they still owed $20,000?

The lien was placed on the property - for you or the former owners?

If it is for the former owners, you should see a local attorney and get this resolved.

 

[michael5150]

But why then did I pay $250 for a title search that was performed on July 6th blatantly missed a lien that was recorded on June 28th?

I have a letter dated July 6th that their were no liens or encumberances on the title, but there was a lien dated June 28th, it should have been picked up during the title search.

The lien was for the previous owner.

I hope the title company is up on their payments on errors and omissions insurance.

 

[tranquility]

First things first. Read all the fine print on the contract you signed when you requested the search. Then, read it on the results they gave you. I can assure you they limited their liability and the extent of representation of title.

Second, do you think you are smarter than everyone else who buys title insurance? Why would *anyone* buy title insurance if a quick search that turns up no problem protects title? I mean, really. Although some title companies give a reduced rate, people often pay for title insurance *again* on a refinance. Even though they are the only owners since the last issue. Go figure.

The title company has nothing to fear, unless you've already found an attorney to take it on contingency. Then they have to fear the hassle of a meritless suit.

That does not mean you are SOL, but you have a big 'ol darn hassle in front of you.

 

[michael5150]

First things first. Read all the fine print on the contract you signed when you requested the search. Then, read it on the results they gave you. I can assure you they limited their liability and the extent of representation of title.

Second, do you think you are smarter than everyone else who buys title insurance? Why would *anyone* buy title insurance if a quick search that turns up no problem protects title? I mean, really. Although some title companies give a reduced rate, people often pay for title insurance *again* on a refinance. Even though they are the only owners since the last issue. Go figure.

The title company has nothing to fear, unless you've already found an attorney to take it on contingency. Then they have to fear the hassle of a meritless suit.

That does not mean you are SOL, but you have a big 'ol darn hassle in front of you.

Thanks for the reply and no, I don't think I am smarter than those that purchase title insurance but I DO expect a title search to be of some basic value. In this case, it was of no value whatsoever ($250 well spent). I wasn't like this lien was somehow hard to find.

So, the lien holder can only get paid if the land is sold or refinanced? If so, I will simply never sell or refi the lot? They can not come after me drectly right?

 

[seniorjudge]

Thanks for the reply and no, I don't think I am smarter than those that purchase title insurance but I DO expect a title search to be of some basic value. In this case, it was of no value whatsoever ($250 well spent). I wasn't like this lien was somehow hard to find.

So, the lien holder can only get paid if the land is sold or refinanced? If so, I will simply never sell or refi the lot? They can not come after me drectly right?

They can foreclose on the land, meaning you will lose it.

And the most you will get out of the title company is what you paid for the letter report. Read it again...that's what it says.

 

[michael5150]

They can foreclose on the land, meaning you will lose it.

And the most you will get out of the title company is what you paid for the letter report. Read it again...that's what it says.

Thanks for the response seniorjudge.

I paid $9000 for it so it would not be a complete disaster in this case, just a sad lesson learned and a good advertisement for title insurance. I wonder why they did not foreclose already?

Hypothetical situation, they foreclose, land is only worth 30k, can they come after me for the remaining 20K?

The title attorney did indicate that the lien was improperly filed. Something about it being submitted after maturity date or something to that effect. Not sure if there is any recourse in that case.

 

[PghREA]

http://dictionary.law.com/default2.asp?typed=title+search&type=3&submit1.x=61&submit1.y=13


http://dictionary.law.com/default2.asp?typed=title+insurance&type=3&submit1.x=48&submit1.y=10