What is your recourse for compensation from the title insurance company if your property title was improperly cleared and you do not have a right of way that you thought you had?

Answer 1

Any property is considered to have the right to ingress and egress. "Landlocked" property would be a cloud on the title. The Title Agent should have discovered this in the search if there were no rights for ingress or egress recorded or included in the Legal description. File a claim with the attorney or title agent's underwriter. It is irrelevant what was included in the contract. Sue the title company and the seller/homebuilder. The seller should never have put the house on the market with an unclear title. The title company should have done their job properly. You say you THOUGHT you had a right of way. Was there anything in the contract for sale or deed that indicates it exists or did you just THINK it did? Is there actually a cloud on the title? Get your ducks in a row before you start filing lawsuits against anyone. You may not have a case if you have no documentation, at the very least you will need a reliable witness who heard the seller or his agent tell you there was a right of way. The property was cleared right? Witnesses and documentation is good, but if the title was cleared by the title company, they are At Fault because they did not do their job - therefor they can be sued! Yes, get your ducks in a row, but get a lawyer and start the process now. I have a very dear friend who is experiencing the same exact thing. They moved into a house that ended up not having a clear title - even though the title was cleared. They were advised by the lawyer to sue the homebuilder (seller) and the title company. My point is that what you thought was included in the deal is irrelevant if it is not mentioned in the contract. When you buy a car, you may assume there is a spare tire and jack in the trunk, but the deal is still valid if there isn't. The title to the property may be good, but still not include everything the buyer expected. A consultation with a lawyer should be your second step. Of course, the first thing to do is get advice from this site ;>) We are talking about the title right? Not the contract or what is in the house, but you asked about the title being improperly cleared. The purpose of a title company is to check for leins against the house (anything that causes the title to NOT be free and clear for a sale). What happened in your case: the title was not free and clear, YET the title company cleared it. So you don't get to move in (if you already have, you are paying mortgage on a house you can't ever resell until this title becomes clear). This is a very different situation from a car or other item. We are talking about real estate and the laws are very different. If the seller knew the title was not free and clear before putting it up for sale, they are liable. The title company is already liable for their mistake. In my friends case, the title company is paying for the lawyer because they know they are in trouble already. Talk to your real estate agent, he/she knows a lot more than anyone here about the property laws in your state. File a claim against the Title Agency and their Underwriter. DO NOT CONSULT YOUR real estate AGENT. A real estate agent cannot give you LEGAL advise, only an attorney can do that. So hire an attorney if you need legal advise.