So, I'm being sued.....

[silverpig]

Originally posted by: Schrodinger
Title insurance is a farce so I wouldn't count on it.

Lawyers sell it when it should be insurance agents. Parents bought a building that was to be inspected by the title insurance agent (their lawyer), he kept the money and didn't get the inspection done and low and behold the building is condemned (a strong wind enough to blow it over). Father is having impossible time claiming cause the agent has to do it--you can't go right to the company or something. Problem is that he can't find a lawyer who will go against their own. Lawyers are scum like that

Send him to a collections agency

 

[bunker]

Originally posted by: FoBoT
was the guy that served you wearing ass-less chaps?

No, it wasn't Fausto. I actually know him IRL and would of had the shotgun out if I saw him coming .

 

[moshquerade]

Originally posted by: bunker
Knock on the door tonight:
Man: "Are you XXXX XXXX?"
Me: "yes"
Man: <hands me papers> "You've been served."
Me: "what the hell is this?"
Man: <walks back to his car and leaves>

Apparently there was a lein on our house when we bought it. The contractor didn't pay one of his sub-contractors and owes them $5600 so they put a lein on the house...last November. We just bought the house 2 months ago.

For those of you that don't know anything about real estate a title company does a title search before you buy the house to check for these things, apparently ours sucked and missed it.

On a positive note, I have title insurance so I'm not on the hook for any $$ but I just know this is going to be a big pain in my ass.

Named in the lawsuit are the contractor, the realty company running the subdivision, me, my wife, and my mortgage company.

that's bullshit. sue the title company for doing a crappy job.

 

[Ausm]

Originally posted by: oldsmoboat
Did you buy title insurance?

Ditto

If you did the Title company is liable.


Ausm

 

[DeMeo]

I'm not an attorney, but I have some experience in the real-estate business.
I could be wrong on this, but...

If the lean was on the house before you bought it, then the title company should be held liable. Good thing you have title insurance.

Also, as part of the closing, the seller should have signed paperwork stating that they did not have any mechanics leans on the property, as a matter of fact, there's usually something that specifically asks if any work has been done on the house (typically the seller has to clearly acknowledge that any work HAS been fully paid).

If the seller signed something like this, then they committed fraud.

If I were you, I'd contact an attorney ASAP. You probably can force the title comapany and/or the seller to pay any legal fees you encounter as well.

 

[aphex]

Originally posted by: DeMeo
I'm not an attorney, but I have some experience in the real-estate business.
I could be wrong on this, but...

If the lean was on the house before you bought it, then the title company should be held liable. Good thing you have title insurance.

Also, as part of the closing, the seller should have signed paperwork stating that they did not have any mechanics leans on the property, as a matter of fact, there's usually something that specifically asks if any work has been done on the house (typically the seller has to clearly acknowledge that any work HAS been fully paid).

If the seller signed something like this, then they committed fraud.

If I were you, I'd contact an attorney ASAP. You probably can force the title comapany and/or the seller to pay any legal fees you encounter as well.

When we closed on our house a month ago, i recall signing something to that effect. I'll ask some of my professors today to get their take on this, a few of them have practiced real estate law for years now.

 

[Scarpozzi]

I HAD to get title insurance through my mortgage lender. They wouldn't approve the loan without it.... I would say you're pretty much in the clear due to the insurance.

 

[allisolm]

From a spelling nazi:
no to lein
no to lean
yes to lien


Hope you get it all straightened out with no cost to you and no more hassle than that involved in turning the whole matter over to the title insurance people.

 

[bunker]

Family friend is an attorney so no costs to me there .

Just talked to the builder. Apparently he fired this contractor because they were doing a piss poor job and they didn't feel they were paid enough for what they actually completed.

This sub contractor was working on two different homes of his and had filed liens (is that better allisolm ) on both the houses. The contractor thought he paid both of them but only paid the one on the other house, he said he is taking care of it as we speak.

 

[allisolm]

Originally posted by: bunker
Family friend is an attorney so no costs to me there .

Just talked to the builder. Apparently he fired this contractor because they were doing a piss poor job and they didn't feel they were paid enough for what they actually completed.

This sub contractor was working on two different homes of his and had filed liens (is that better allisolm ) on both the houses. The contractor thought he paid both of them but only paid the one on the other house, he said he is taking care of it as we speak.

Thanks. I was beginning to get a little twitch under my left eye, but it's gone now. Looks like you have things under control.

 

[blakeatwork]

Originally posted by: bunker
Knock on the door tonight:
Man: "Are you XXXX XXXX?"
Me: "yes"
Man: <hands me papers> "You've been served."
Me: "what the hell is this?"
Man: <walks back to his car and leaves>

Apparently there was a lein on our house when we bought it. The contractor didn't pay one of his sub-contractors and owes them $5600 so they put a lein on the house...last November. We just bought the house 2 months ago.

For those of you that don't know anything about real estate a title company does a title search before you buy the house to check for these things, apparently ours sucked and missed it.

On a positive note, I have title insurance so I'm not on the hook for any $$ but I just know this is going to be a big pain in my ass.

Named in the lawsuit are the contractor, the realty company running the subdivision, me, my wife, and my mortgage company.

I'd be kicking the lawyer who cleared the title for you in the ass.. bet this makes the title insurance seem a good investment...

Oh well, forward any and all charges to the title Company, and make them bloody well pay...

 

[OutHouse]

Title insurance isnt going to do sh*t for you. they will claim no responsibilty for missing the lein. your only course of action now is to pay the lein then sue the former owners for the money.

Tom Martino gets calls like this all the time and that is what he tells them.

sorry dude. that really sucks.

 

[ggavinmoss]

Originally posted by: bunker
Family friend is an attorney so no costs to me there .

Just talked to the builder. Apparently he fired this contractor because they were doing a piss poor job and they didn't feel they were paid enough for what they actually completed.

This sub contractor was working on two different homes of his and had filed liens (is that better allisolm ) on both the houses. The contractor thought he paid both of them but only paid the one on the other house, he said he is taking care of it as we speak.

Wow, somebody stepping up and taking responsibility!? WTF? In this day and age??

-geoff

 

[maziwanka]

Originally posted by: bunker
Family friend is an attorney so no costs to me there .

Just talked to the builder. Apparently he fired this contractor because they were doing a piss poor job and they didn't feel they were paid enough for what they actually completed.

This sub contractor was working on two different homes of his and had filed liens (is that better allisolm ) on both the houses. The contractor thought he paid both of them but only paid the one on the other house, he said he is taking care of it as we speak.

looks like the situation is resolved...

 

[isasir]

WTF is title insurance for then if it doesn't cover you in this situation?

 

[Adul]

Originally posted by: isasir
WTF is title insurance for then if it doesn't cover you in this situation?

 

[flot]

Interesting title insurance FAQ

 

[Nitemare]

Originally posted by: Adul

Originally posted by: isasir
WTF is title insurance for then if it doesn't cover you in this situation?

For profit...

Same thing as auto insurance. People are so afraid that they will raise their premiums that they hardly if ever use it. So the average user pays 100-250 a month because the state makes them give State Farm or whatever insurance company money.

 

[Armitage]

Originally posted by: flot
Interesting title insurance FAQ

Wow ... interesting link. It seems that many "basic" policies insure you against bank liens &amp; such, but you may have to buy an "extended" policy to protect you against mechanics liens.

I'll definitely look closer at the title insurance issues next time I buy property.

 

[DBL]

Originally posted by: Nitemare
For profit...

Same thing as auto insurance. People are so afraid that they will raise their premiums that they hardly if ever use it. So the average user pays 100-250 a month because the state makes them give State Farm or whatever insurance company money.

Obviously, it's for profit. You wouldn't expect an insurance company to not make a profit? It's the nature of insurance that most people are going to give more money than they claim. However, it's a small price to pay IMO for some peace of mind, especially when we are talking about your house.

 

[JulesMaximus]

That sucks ass.

 

[RKS]

Originally posted by: Armitage

Originally posted by: flot
Interesting title insurance FAQ

Wow ... interesting link. It seems that many "basic" policies insure you against bank liens &amp; such, but you may have to buy an "extended" policy to protect you against mechanics liens.

I'll definitely look closer at the title insurance issues next time I buy property.

Actually the extended policy will cover you for silent liens. I am a title examiner and if the lien is not recorded with the county or filed in the clerk of courts office I don't think any examiner would be able to find it. I believe this would be the responsibility of the parties who actually had notice of the lien to resove.

I think for the title company will only be held liable is the lien was properly recorded/filed. If it was not then you can argue that it was not 'attached' to your property correctly when you purchased the house.

It seems you built the house, new subdivisions can be a pain in the a$$ since you have to determine if the particular lot number comes out of particular acreage and if any mortgage or lien on that acreage apply to the specific lot. Usually I look for blanket liens or mortgages and a subsequent partial release for my particular lot.

good luck with the lien.

 

[bunker]

Originally posted by: RKS

Originally posted by: Armitage

Originally posted by: flot
Interesting title insurance FAQ

Wow ... interesting link. It seems that many "basic" policies insure you against bank liens &amp; such, but you may have to buy an "extended" policy to protect you against mechanics liens.

I'll definitely look closer at the title insurance issues next time I buy property.

Actually the extended policy will cover you for silent liens. I am a title examiner and if the lien is not recorded with the county or filed in the clerk of courts office I don't think any examiner would be able to find it. I believe this would be the responsibility of the parties who actually had notice of the lien to resove.

I think for the title company will only be held liable is the lien was properly recorded/filed. If it was not then you can argue that it was not 'attached' to your property correctly when you purchased the house.

It seems you built the house, new subdivisions can be a pain in the a$$ since you have to determine if the particular lot number comes out of particular acreage and if any mortgage or lien on that acreage apply to the specific lot. Usually I look for blanket liens or mortgages and a subsequent partial release for my particular lot.

good luck with the lien.

I have a copy of the lien in front of me. The stamp on it says "Recorded 17 Nov 2003...Register of Deeds..etc", so I have no idea how the title co. missed it.

 

[Darthvoy]

If you got title insurance, then the responsibility lies with them, not you. I work with senior title officers all the time. If you have any quesions feel free to pm me.

 

[DevilsAdvocate]

I practice a little real estate law. I can't really give you any advice, since I'm not licensed in MI, but it sounds like you may have a cause of action against the title company for a negligent search. It is possible that the lien was recorded after the sale.

A quick consult with a lawyer should clear things up nicely.