Legal Question in Insurance Law in California
Title Insurance defect discovered
Own my home w/title insurance. Later, had refinance done & purchased more title insur. I believe a lender's policy. Title was clear. Months later, found a deed. Due to the failure of lending policy title co to find this transfer deed, it cost me over $100k. I was given the refi for 100% of the asset, but only owned 50% of it. Title co failed to do research. I had no idea there was a recorded deed on my property, when my parents had me refi & made transfer to me, it caused me to be sued, because I was dealing with another entity. I would have handled it differently when I took the loan in my name, the loan officer would have gotten the other party to sign off & complete a quit claim deed, so I wouldn't have been stuck paying for the whole asset, & only own a fraction of it. I have paperwork showing the date of refi, & that they missed deed already on record & they should have seen it at the recorder's office. Even though a lender's policy, isn't this Title Co. responsible for their error, as I relied on the clear title to sign loan papers. My owner's policy, from years ago said not their issue. Refi Title Co willing to talk to me. Can lender help me?Want to know rights? as Title Co. hid or failed to disclose defect.
2 Answers from Attorneys
Re: Title Insurance defect discovered
Did title change between the date you obtained the property and got your original title policy and the date of the refinance when you bought a lender's policy so the loan could be made? If not then the original title insurer should be on the risk. If yes, then when you got the refinance did you buy title insurance for yourself as well as the lender? A lender's policy is for the lender. So how did this cost you $100K?
Your facts aren't specific enough to give a definite answer but you should contact an attorney since there is a two year statute of limitations to bring an action.
Re: Title Insurance defect discovered
If the title insurance missed a deed, they are liable for the damages you suffered. Some title policies have a binding arbitration clause, meaning you can not sue them in court, you have to go to private arbitration with your claim. There may be a statute of limitations on bringing your claim against the title insurance, meaning you only have so many years to make your claim known to the title insurance company.
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