Lien on the house after closing. How can this be???

Asked by Sophie, 48306 Wed Oct 29, 2008

We just discovered after 6 months past the closing date that the oakland county drain commissioner has a lien on the house that we bought.
I don't want to pay the money since we bougth it with "clean title". I contacted the title company but they are slow to respond in any way...Can this be a real problem for me or does the title company have to solve it?
Thanks!
S.

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3
., , Oakland County, MI
Wed Oct 29, 2008
Sophie,

Some title companies provide more thorough coverage than others. You may want to check with a lawyer or another title company to review your coverage. If you are interested, I can refer you to a very reputable firm that we work with.
0 votes
Kevin Mudd, , Lincoln Park, Chicago, IL
Wed Oct 29, 2008
If you were my client and you purchased your property in the city of Chicago, you would have been the beneficiary of a title insurance policy dated on or after the date of closing. If the lien was recorded after the effective date of the title insurance policy then you would not be covered. If the lien was recorded before the effective date then you would be covered. For buyers who want to avoid these kind of problems, observe any significant public improvement projects which affect the property you intend to purchase. Then ask the local government office (ie. Municipal, County or State) how the project is being financed. Ask your elected officer if the local property owners are being taxed extra or being assessed for the improvement. Also you should discuss this issue with your real estate attorney.
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Oct 29, 2008
At closing you should have bought owners title insurance, they should take care of it for you, if you did not buy it then it is your responsibility to do it, you would contact the titel company that did the closing and ask them to take care of it, if they dont you will have to either pay it or get an attorney to sue the title company. this is the top reason everyone needs to get owners title insurance. good luck working it out.
Web Reference:  http://www.ScottSellsNH.com
0 votes
There are some Liens that go unrecorded and undetected by Title Companies. Some examples of these Liens will be through Utility Companies (Water, Sewer, Waste) for unpaid balances that stay with the house and not the tenant. Cases like this are happening more and more. Title companies are not liable for these unrecorded liens however, Property Debt Research, the Municipal Lien Search Company, guarantees 100% Accuracy and has a $1M E&O Insurance Policy. It's a shame 99% of Realtors do not offer this service to their clients. For information on a Municipal Lien Search, contact me or visit our site at http://www.propertydebtresearch.com
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