What happens if the attorney makes a title mistake?

Answer 1

If the attorney was hired to give you a LEGAL opinion of title but was not the title examiner/reader for the issuing title agency, then it becomes a legal matter which would fall under malpractice.

If the attorney is covered by the Closing Protection Letter and/or either owned the title agency or is employed by the title agency, his/her acts may be covered by the Owner's Policy. A claim with the title underwriter for negligence of title examination or opinion on title cannot be filed if the attorney was a third party, not acting in behalf of the title agency/underwriter. The qualifier to the question is as to whether the attorney was also acting on behalf of the agency/underwriter. In many states, the attorney cannot be representing your interests as well at the agency's.