Legal Question in Real Estate Law in Texas

What recourse do I have if the writer of a title policy knowingly wrote a policy that falsely assured me that I had a clear title?

Here is a brief description:

I bought a lot adjoining my home lot about four years ago. I got a title policy. I sold my home early July.

A few days before the closing, the title company for the buyers found there was a lien on the lot before I bought the property. The day of the closing I found out that the lien holder would accept $2000 to release the lien. I paid it so we could move as scheduled and so we would not loose our new home and not loose the sale of our home.

I applied to the title insurance for a reimbursement but they said no because they have a clause in the policy that says I must be in possession of the property and they must agree in writing before settling any claim.

Fidelity is the insurer and Capital Title is the writer of the policy. I brought to Fidelity's attention that the wife of the developer that had the lien against his company wrote the policy for the title company was so it was not possible she accidentally overlooked the lien on his properties.

I am waiting for Fidelity to answer but this seems to be low priority for them.

1 Answer from Attorneys

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