Legal Question in Real Estate Law in Pennsylvania
Real Estate: Deed and Taxes on home purchase
Hi -
We purchased a home in August of 2008; completed the deed and paid the title company for taxes/deed execution. We recently looked into our deed transfer to find that the transfer had not taken place - our title company had in fact gone out of business.
We paid the full amount for the deed and taxes upon signing. We have been notified by the treasury that no deed was ever put in our name and the paperwork was returned to the title company due to being illegible; but we were never informed as the title company was out of business when they received the notification.
We are now facing not only re-working the documentation, but paying again in full for the deed transfer and our property taxes, which totals over $3,000.
Do we have any legal rights in this situation? A lawyer was present at the document signing, but our real estate agent cannot recall nor does she have documentation of his/her name.
1 Answer from Attorneys
Re: Real Estate: Deed and Taxes on home purchase
If you received any paperwork at the settlement on your property, it should show the title insurance Agent, which is generally different from the title insurance company.
You should have received at the very least a "HUD-1" settlement statement. It lists the Buyer, Seller, Title Insurance Agent and/or Company, the property address, the location of the settlement, and details the financial transaction.
Other documents may help you identify the lawyer who was present at the document signing. If you have a mortgage, the lender should have title insurance information. The lender may also have an "insured closing letter" from the title insurance company that was supposed to insure title, and if the lender will provide a copy to you, you will be able to find out who you should contact.
Title Insurance Companies should be registered and licensed with the PA Department of Insurance, so you could try to get information there. Realtors must also be licensed.
Ask your Realtor who issued the commission check. Also, often Realtors are the ones who order title insurance on behalf of their buyers. It is hard to imagine that the Realtor doesn't remember such important facts about your settlement.
Depending on the size of your county, you may be able to call around to find the lawyer. Your seller should also know who was present.
You should also check with the county real property tax authorities, to see if taxes were paid, and to whom tax bills are being sent.
There have been some instances when a title agent received money and documents for a settlement, failed to complete the settlement, and possibly absconded with the funds. Unless the title insurance company that backed the agent will accept responsibility, it will be difficult to recover funds.
It is hard to determine legal rights with so little information. I hope you have more records that you may refer to, so that you will be able to clear this up.
Without a deed and other documents, you would not be able to reconstruct what happened. Unless the seller agrees to give you another deed, you will not be able to get title at this time.
You should consult a knowledgeable real estate lawyer in your county to help you with this.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
