you discover a title issue after purchasing title insurance, there are several steps you can take to address the situation. Here is a detailed guide on what you should do
Table of Contents
Review your title insurance policy
Start by carefully reviewing your title insurance policy to understand the coverage and any exclusions or limitations. This will help you determine if the discovered title issue falls within the policy’s coverage.
Contact your title insurance company
Reach out to your title insurance company as soon as possible to report the title issue. Provide them with all the relevant details, including the nature of the problem and any supporting documentation or evidence you have.
Consult with an attorney
It is advisable to consult with a real estate attorney who specializes in title issues. They can provide you with legal advice and guidance on how to proceed. They will review the title insurance policy, examine the issue, and help you understand your rights and options.
Gather necessary documentation
Collect all relevant documents related to the property, including the purchase agreement, title insurance policy, closing documents, and any other paperwork that may be relevant to the title issue. These documents will be essential in resolving the issue.
Conduct a title search
Hire a professional title company or a real estate attorney to conduct a thorough title search. This search will help identify any existing liens, encumbrances, or other issues that may affect the property’s title. The results of the title search will be crucial in determining the extent of the title issue and potential remedies.
Communicate with the seller
If the title issue is a result of an error or omission made by the seller, it is important to communicate with them. Provide them with the details of the issue and any supporting documentation. Depending on the circumstances, you may negotiate with the seller to resolve the issue amicably or seek legal recourse if necessary.
File a claim with the title insurance company
If the discovered title issue is covered by your title insurance policy, you should file a claim with your title insurance company. They will guide you through the claims process and may appoint an attorney to represent you in resolving the issue.
Follow the instructions of your attorney and title insurance company
Throughout the process, it is crucial to follow the instructions and guidance provided by your attorney and title insurance company. They will work together to resolve the title issue and protect your interests.
Remember, every situation is unique, and the specific steps you need to take may vary depending on the nature and severity of the title issue. Seeking professional advice from a real estate attorney and working closely with your title insurance company will help ensure a proper resolution.