Title insurance is an important part of the real estate transaction process. It offers a type of safety net. A title insurance company is hired to go through all the legal minutiae of the property and let you know of any potential issues before you finalize the purchase. If there are issues, like an easement, the title insurance company should find it and let you know. This can lead to more negotiations with the seller and address any issues before you take ownership of the property.
But what if the title insurance company misses something?
Thankfully, there are legal remedies. Before diving into those remedies it is helpful to take a step back and look over the easement. Is it a short-term issue or is it larger and could lead to a significant cost? If it is short-term, it may be best to let it run its course and move on. If not, and if the easement at issue could lead to a significant decrease in the value of the property than it is wise to look into legal remedies.
Various issues can arise when going through a legal claim with title company. Two specific examples involve additional expenses and deadlines. The issue may require hiring third parties, like a survey company, to review the easement. You will need to determine who is responsible for these expenses — you or the title company?
Deadlines are also important for any legal claim. A failure to meet these deadlines, which can vary for each portion of the process, can result in a loss of the ability to pursue legal remedies. An attorney experienced in real estate law in your area can review the claim and discuss these deadlines, helping to better ensure you do not miss out on the ability to hold the title insurance financially accountable for their failure.