Legal Question in Real Estate Law in Texas

Title Insurance - legal recourse
We recently went to refinance our mortgage and learned at the closing that our garage and cabana house are encroaching into utility easements. When we originally purchased the house, the survey did not show any building encroachments. We have a title insurance policy verifying that we did not have easement encroachments. Now we are concerned that we will not be able to sell our house. The underwriters were concerned about underwriting the refinancing title policy because of the ''significant easement encroachments''. What is our legal recourse with the Title Insurance company? If this encroachments had been disclosed when we were purchasing the house, we would have probably prevented us from closing the sale.

Asked on 8/28/02, 6:16 pm

Joseph A. McDermott, III Attorney at Law

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Re: Title Insurance - legal recourse

Yes, you have a claim under your title policy. You should write them and set out the facts and demand they cure the problem.

Answered on 8/28/02, 7:11 pm

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