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title insurance coverage

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kgreene

Junior Member
What is the name of your state?What is the name of your state? NJ

When we purchased a house at the NJ shore we had a title company do a title search they did not find any problems with the title. We are now selling the house and the buyers title company found that there was never a building grant on about 70% of the property. Years ago NJ had much of the land at the shore issued as flood and this owner never went throught he conversion.

Our title company is owning up to the mistake and are offering the buyers a guarantee to clean up the issue. If the buyers do not accept and back out, are we able to claim losses until the issue is fixed - such as additional mortgage payments we incur, utilities, insurance, legal, taxes etc?
 


seniorjudge

Senior Member
If your title insurance company does not resolve the issue, then ask for the farm and settle for a nice cow.


Q: If the buyers do not accept and back out, are we able to claim losses until the issue is fixed - such as additional mortgage payments we incur, utilities, insurance, legal, taxes etc?

A: Generally, no. These are not damages caused by a title mistake; they are consequential damages, not direct damages. Your damages will be measured by the decrease in value in the land (market value) because of the difference in value caused by the title mistake.
 

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