Legal Question in Real Estate Law in New York

I bought a house back in 1999 that was a foreclosure. Today, while I was trying to refinance, the title search came up with a lien against the house from the previous owner. I checked all my original documents from 1999 and saw that I paid for a owner's title insurance but never received one. I tried to contact the title insurance (Titleserv), but they went out of business. I googled about this company and read that they abruptly shutdown business in 2011 and the FBI have all their documents.

I called the mortgage bank and also the lawyer who represented me as well as the sellers lawyer and they pretty much tell me that they do not have any records since it was over 14 yrs ago. I also tried Fidelity, who according to the paper work, was the insurance company who insured the title. What should /can do to clear this lien against my house? The bank, which is the same that I used when I bought the house, wants to dismiss this title problem in order to refinance but I do not want to until the title is clear.


Asked on 10/19/13, 10:51 am

2 Answers from Attorneys
Arnold Nager Arnold H. Nager, Esquire

The lawyer who represented you at the closing should have the initial title report. It would have been necessary in order to complete the transaction. Ask him/her to go through your file and find it for you. This report would also have the name and title number of the company issuing the title policy as well as any exceptions found at the time of the search. Thge premium you paid for the title insurance requires the title insurance company to remedy any issues which may arise after the closing.

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Answered on 10/19/13, 11:02 am
Kevin Connolly Kevin J. Connolly

Titleserv's title work is likely bogus. The quickest solution is a Bar Claim proceeding under Article 15 of the Real Property Actions & Proceedings Law. Feel free to call me at 516-242-1453 to discuss what needs to be done.

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Answered on 10/19/13, 11:50 am


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