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View Full Version : Can I sue the title company for not obtaining all the proper paperwork prior to clos?


Plumeria77
Dec 17, 2011, 01:25 PM
There were two stipulations not honored in our agreed upon signed contract. 1. Electrical repair was not updated to code and certificate that it was corrected as stated was not submitted. 2. Termite inspection was completed, 2 actually, and both stated treatment was needed and was never done, nor was a required 1 year warranty.

The seller failed to disclose the plumbing, electrical, and extensive termite damge in their Seller's Disclosure Statement. My home inspection caught the electrical only and that's why we put that contingency in the contract. The Seller's signed it to agree but now say "they didn't see it."

I don't know how to proceed. Take the Seller's to small claims and or sue Title Company for not catching it?

AK lawyer
Dec 17, 2011, 01:53 PM
... I don't know how to proceed. Take the Seller's to small claims and or sue Title Company for not catching it?

Small claims, perhaps. But I don't know about suing the title company. It is not a breach of the title policy. If the title company was responsible for insuring, in the closing, that all conditions of your contract were complied with, perhaps. Can you point to such language in a written agreement you had with the title company?

ScottGem
Dec 17, 2011, 02:35 PM
I don't see any liability on the part of the title company. The are responsible for making sure clear title is conveyed, not to ensure that the seller complies with all terms of the contract. It is up to you and your attorney to check that. If there was an issue some funds should have been set aside as escrow from the proceeds of the sale.

Fr_Chuck
Dec 17, 2011, 05:00 PM
Sorry, it is no the titles company duty here, It would be your attorneys duty to be sure it was all done ( if you had one)
And at the end of the day it is YOUR duty to be sure to review all documents prior to closing.