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Title Company Error and now I have to pay.

Discussion in 'Homeowners Associations & Boards' started by Juan Melendez, Dec 19, 2018.

  1. Juan Melendez

    Juan Melendez Law Topic Starter New Member

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    This is my situation. I closed on a property on July 2018. It was a regular sale and regular finance. no, foreclosure or Shortsale. This property pays two separate associations. One for the HOA and one for a clubhouse. During the due diligence performed by the Title company, they contacted the incorrect managing company for the clubhouse and failed to discover an outstanding debt for the clubhouse dues. I know they contacted the wrong company because they said so on an email conversation. Now I received letters from the clubhouse lawyers with the intent to record a lien on my property. Each month the amount is going up exponential. I put a claim to the title insurance but they denied coverage. I requested reconsideration, but they are procrastinating the issue. They say they are investigating but it seems that they are investigating in how the could find a way out of paying. My question is:
    Does the title company bares any responsibility and should they pay for there error?

    Any advice would be appreciated.
  2. zddoodah

    zddoodah Well-Known Member

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    One would need to review the title policy and the preliminary title report (and any other relevant documents) to opine intelligently about the title company's potential liability.
    hrforme likes this.
  3. flyingron

    flyingron Well-Known Member

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    He also needs to read the agreements he signed with the title house covering the preparation of the closing. I almost guarantee it holds them not responsible for such errors.

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