I have a friend who is going through the below dilemma right now.
Sam knew when he got the lot that there was a dirt driveway at the edge of his lot that lead to a home (owned by we'll say Scott) behind his lot. What he did not know until this month is that there is a 50' easement across his lot. There had been 2 different title searches done by 2 different attorneys -- both missed this easement.
We will call the friend, Sam. Sam bought a lot -- he did not get owner's title insurance. Later, Sam built a home on the lot. The lender required lender's title insurance, but Sam did not purchase owner's title insurance.
Sam knew when he got the lot that there was a dirt driveway at the edge of his lot that lead to a home (owned by we'll say Scott) behind his lot. What he did not know until this month is that there is a 50' easement across his lot. There had been 2 different title searches done by 2 different attorneys -- both missed this easement.Please watch the video for full details.
Had Sam purchased owner's title insurance, he would be protected. But since he didn't, he is out in the cold. He will never be able to sell his house or certainly not ever get his value out of it.
I know I sound like a broker record, but every purchaser needs owner's title insurance.
Liz Loadholt
Broker, SC Certified Trainer, Relocation Director
Co-founder of AgentOwned Realty ]
Co-founder of AgentOwned Realty ]
Liz@AgentOwned.com
843-725-5007
The AgentOwned Realty serves your real estate needs for:
Charleston, Johns Island, James Island, Mt. Pleasant,
Isle of Palms, Sullivan's Island, Daniel Island, North Charleston,
Summerville,Goose Creek, Moncks Corner, Santee, Manning, Sumter, Florence, & Myrtle Beach, all in South Carolina
Isle of Palms, Sullivan's Island, Daniel Island, North Charleston,
Summerville,Goose Creek, Moncks Corner, Santee, Manning, Sumter, Florence, & Myrtle Beach, all in South Carolina
He can sue the attorney who certified title to him......title insurance would have been the easy way....but there are other ways to save his investment....
Barbara --- you are of course, correct -- he can either one or both of the attorneys who missed the easement. Thanks for stopping by.
Hi Liz, A little late but seems like he now needs a RE attorney to pursue the attorneys who missed the easement ?!?!
This is a prime example of why a Real Estate professional should always be used when conducting a transaction. In my market in Scottsdale Arizona we are starting to see foreclosure transactions where the previous buyer/seller did not complete the transaction properly and there are various issues with title and the transaction. Always buy title insurance and always pay attention to your Realtor... and it never hurts to get a second opinion.
Oh you are soooo right everyone needs title insurance. I had a client that one time bought a home and while the attorney did a title search everything seemed fine. After about 7 months in the home there came a knock on the door from the Sheriff's office. Serving foreclosure papers not to them or the people they bought the home from but from the people that sold it to the couple before. At closing there had been a closed equity line which all of a sudden was filled up and then never paid on! So believe me they are glad for Chicago Title.
Liz - Am closing on a property tomorrrow. Cash Deal. He asked why there is a line item for title insurance. I likend it to home owner's insurance. Cheap insurance for the ultimate OH - NO
Hi Liz! I'm with the rest of the group--hire an atty to sue the ones that did the lender's title search. What a sad state of affairs--I'm sure that this guy will not be able to sell his home with someone else's driveway going through his front yard so, what other recourse would he have? So sad...
This is a sad situation, Liz. You don't sound like a broken record though - you can't preach this enough!
Janna is right Liz! It needs to be standard practice!
Thanks so much to each of you --- we are all on the same page with this one --