Does title insurance cover previous work done without permits X?

Asked by Jbmanypenny, Exeter, NH Tue Jul 2, 2013

I have tittle insurance and am selling my home. The buyers title insurance company came up with a list of violations that my title company didn't identify. Is my title company liable?

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Leah Potter, Home Buyer, New York, NY
Fri Jan 9, 2015
yes, title insurance will cover the legal costs as well as any costs incurred with complying with building regulations or demolishing unsafe building work.
0 votes
Michael Rich…, Agent, NY,
Mon Jul 8, 2013

Searches of municipal agencies that reveal violations are not covered by title insurance since they cannot result in the loss of ownership of the property. For a fee, title companies offer the service of searching the records of these agencies, but are prohibited from offering insurance against any monetary loss resulting from violations since this does not come within the scope of title insurance.

Michael Richman
Licensed Real Estate Associate Broker
KIAN Realty
450 7th Avenue Suite 1501
New York, NY 10123
212-757-8268 x220
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Anna M Brocco, Agent, Williston Park, NY
Tue Jul 2, 2013
Title insurance does not cover unpermitted work; as for the list of violations--discuss any issues with your attorney, he/she can better advise....
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Don Tepper, Agent, Burke, VA
Tue Jul 2, 2013
No. Title insurance wouldn't cover work done without permits.

As Ron says, a mechanic's lien would appear. But that has nothing to do with whether work was permitted or not.
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Ron Thomas, Agent, Fresno, CA
Tue Jul 2, 2013
I echo Tim's comments:
I have never heard of Permits shown on a Pre-Title; I can't imagine how they wouod have access to that information.
The one possible thing that my brain conjures is if there was a Mechanic's Lien filed for the work.
Good luck on that one,
And, NO! I am sure that the Title Company would not be liable nor cover that; it just isn't their baliwick.
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Robert Basin, Agent, Sun City Center, FL
Tue Jul 2, 2013
Check your county website to see if the buyer company is correct. Some work may not have needed a permit or had different standards at the time of the work. Has the buyer had a professional home inspection? I'm not familiar with NH real estate law, but your contract may address this issue.
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Tim Moore, Agent, Kitty Hawk, NC
Tue Jul 2, 2013
I can't imagine not having a permit for installing an electric socket would be a title violation and affect the clear title to a property, as an example. Are you sure they are title violations or did the buyers title company just have complaints? What are these title violations they mentioned? If they are things like encroachments on the property found on a survey, and you waived having a survey when you bought the property, then you could have a problem that you are not covered for. There is a difference in having title insurance and having limited title insurance.
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