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We have an offer on our house and are now in the process of doing the closing. We've just been told that the deed contains incorrect info. The company that made the error has been trying to contact the old sellers to reissue another deed. What is our recourse in this type of situation? This could delay the closing. Can we hold the company responsible in anyway?
You may be screwed. I know if I was a previous seller of a house and someone came to me (probably years) after the selling it saying I needed to do anything with it, requests would go ignored.
It sounds like the title company found this incorrect info in a title search for title insurance. And the old sellers need to be contacted to correct this.
If so, this is an issue the homeowner (seller) has with his home title. Not really you. The homeowner is getting it straightened out it would seem. He appears to be in contact with the title company, perhaps company that did his settelement when he purchased, etc. This is why the owner of a home gets title insurance (hopefully) for one thing.
Your issue would be with the homeowner. Even though not his fault, it looks like he cannot provide you with clear title at this moment. However, it might not take long to clear up. If your desired date to close, your desired loan commitment is expiring, whatever your issues are, then you may need to get your deposit back in view of the homeowner not being able to provide clear title because, well, looks like he doesn't have clear title. (Again, these things can happen and that's what lender's title insurance AND owner's title insurance are for. It can be solved usually...but, yes, can take time.)
It sounds like the title company found this incorrect info in a title search for title insurance. And the old sellers need to be contacted to correct this.
If so, this is an issue the homeowner (seller) has with his home title. Not really you. The homeowner is getting it straightened out it would seem. He appears to be in contact with the title company, perhaps company that did his settelement when he purchased, etc. This is why the owner of a home gets title insurance (hopefully) for one thing.
Your issue would be with the homeowner. Even though not his fault, it looks like he cannot provide you with clear title at this moment. However, it might not take long to clear up. If your desired date to close, your desired loan commitment is expiring, whatever your issues are, then you may need to get your deposit back in view of the homeowner not being able to provide clear title because, well, looks like he doesn't have clear title. (Again, these things can happen and that's what lender's title insurance AND owner's title insurance are for. It can be solved usually...but, yes, can take time.)
We are the the current homeowner/home seller. I have to check to see if we have title insurance. It was purchased a long time ago.We have done all we can by trying to pressure the company that made the error to find alternate means of contacting the old sellers. Its really an unfair situation especially for us. I want to hold the company that made this error responsible for all of this inconvenience we have to deal with.
your former closing attorney, or the buyers closing attorney, or hell your title insurance company - they're the ones who should be doing all of the work.
So you got title insurance, right? Call the title company. And the settlement attorney/company. As BoBromhal said.
If you don't get on them, transpose what I wrote already onto you. You can't give clear title so the buyers should get reimbursed if this isn't resolved soon.
In my experience, half of all buyers do not get "owners' title insurance" not knowing that the title insurance they are required to purchase is for the bank/mortgagee. OP, you need to check thoroughly for your closing documents.
If you had an attorney represent you at your closing, s/he might still have a copy of the closing documents and/or title policy to know which title company is insuring you (hopefully).
If it's a minor correction and the previous sellers do not contact you, you will need to contact an attorney.
Because you are unable to provide clear title to the purchasers, and if they are unwilling to wait for whatever delay, then you will be required to return their deposit and possibly whatever expenses they incurred by relying upon you providing a clear title.
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