Legal Question in Real Estate Law in California
Title transfer
I recently refinanced my home. When I bought it 12 mo's ago nothing came up during the title search. This time I got a letter from the title company saying something may have come up. They were not forthcoming in sying what in particular it was though. The problem is though they already bought the mortgage from the old lender. Is my house in some kind of limbo between titles? Can I lose it because of this judgement or lien? Can they just restore the old title?
Thank you
3 Answers from Attorneys
Re: Title transfer
Your title policy may protect you. Please contact Mary at my office to set up appointment for free consultation.
Re: Title transfer
Whatever may have come up in a more recent title search, you are entitled to a clearer explanation. It is not necessarily something to worry about or try to correct, but obviously if it is a recent lien or judgment, that would be a problem needing action. However, many titles especially to older or rural properties have all kinds of "ancient" easements, etc. that are not real worries for the owner. You can't undo the current status of title and revert back to an earlier, cleaner title without taking action addressing the recent cloud. This might require court action. Get a satisfactory explanation of the problem from someone (including requesting a title search from another comapny, if necessary) and then decide what to do. You may need a lawyer, but you can do preliminaries yourself and maybe clear away your doubts.
Re: Title transfer
If there is an old cloud on title, and the original title company missed it, it could be their responsibility to clear it up. This is the reason that you have purchased title insurance.
They should be able to give you a copy of the preliminary title report, and show you exactly what the problem is. It could be that someone with a similar name came up on the search, and that it just needs verification to clear.