Title Insurance problem - Posted by Michael

Posted by dewCO on September 24, 2000 at 23:15:38:

Title company is only responsible for searching public records as far as I know. Don’t know where the disclosures came from, possibly your lender(?). Don’t think they are liable. The books are public information and that is something that you could and should have checked prior to purchase.

Title Insurance problem - Posted by Michael

Posted by Michael on September 24, 2000 at 19:40:49:

I recently purchased a lot and built home. After purchasing the lot I found out there was a water assessment and tap fee of approximately $1800. At closing there was a disclosure I had to sign, stating that I knew about the sewer capacity fee and sewer tap fee ($775), but nothing about the water. When I asked if title insurance would reimburse me for the loss, I was told “no” because they didn’t know about it and that it was not in the public records.

After further research I discovered that the title company, who has been doing business in this relatively small community for years, did not know that there was a City Water Board that was a separate entity from the municipality itself, and that it was not recorded in Public Records. The municipality handles the sewer fees and are always contacted by the title company to determine if there are any such fees, and the records are searched at the county court house. The water board informed me that they keep a book with all there resolutions and it is available, to the public, to review at there office (Does this make it Public Record?)

Should Title Insurance reimburse me?

I am about to receive an offer on the house. If the house sells before this matter is resolved, and they are liable, will I lose my claim?

Re: Title Insurance problem - Posted by JD

Posted by JD on September 25, 2000 at 24:09:50:

No that does not make it a public record (in all States that I know). No, you will not lose your claim if you sell the house. Consider yourself lucky the tap fee is only $1800, I have seen them as high as $19000.