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A good reason to get a Title Insurance Policy paid for by the seller. Doesn't Florida do Title Policies ?
The Insurance Policy should take care of this problem.
But it sounds like the title policy only covered the value of the land--not the house which was subsequently built upon it. So, theoretically, a title company could get out of it by only paying for the value insured.
Also from the story, if I read it correctly, was that the lien was not recorded against the property, but that it was a general lien simply recorded in the County which supposedly affected all properties owned by the debtor. If that was the case, Florida should seriously consider changing their state law. A lien, IMO, should be recorded against a particular property--otherwise it's not the best form of public notice, as this case demonstrates.
A competent title searcher should have found the lien. A title search searches for liens not only against the property but also against the grantor ( the person selling the property). Then it's the job of the title searcher to read those liens, easements, etc. found and determine, which, if any, may apply to the property in question. Somebody dropped the ball or the buyer was bamboozled by the seller who seems to have been wearing several hats.
Also from the story, if I read it correctly, was that the lien was not recorded against the property, but that it was a general lien simply recorded in the County which supposedly affected all properties owned by the debtor
I think its the title insurance's job to make sure there are no issues in that area of the sale.
If anything goes wrong, they ought to pay. They are supposed to run a search to make sure there are no issues. If they don't find something that's out there, its on them.
I think its the title insurance's job to make sure there are no issues in that area of the sale.
If anything goes wrong, they ought to pay. They are supposed to run a search to make sure there are no issues. If they don't find something that's out there, its on them.
I predict a certain law firm's attorneys losing their FL license and a title company going out of business over this incredibly stupid transaction.
There is no excuse for the seller's actions and the title agent for not catching this from the beginning.
Yeah but they probably didn't have to pay any stupid Realtor commission.
While I agree, this situation was far over the head of most realtors. No matter how much some try and play lawyers, few are. I seriously doubt a realtor could have protected anyone.
I seriously doubt a realtor could have protected anyone.
Absolutely true and the sad thing is the many realtors who tried to work with this type of transaction would have advised the buyer to consult a real estate attorney. Didn't work to well in this story for the buyer.
Reminds me about the joke about a dozen lawyers up to their neck in concrete.........not enough concrete.
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