Title Insurance ?!?!?!?!?!

[BTE]

Somebody please explain to me the purpose of title insurance when you buy a home!!

I know that it is to protect your property over ownership disputes....but isn't it also for any type of loss if there was an error made by the title company??

Bought a house 6 months ago. I have two homeowners associations. The actual community I live in and then a Master Association for the development as a whole. Anyway, at the time we purchased a home, the title company only contacted the small HOA...not the master assoc. Well, come to find out, the previous homeowners were behind in the master association fees...which are now being billed to me! The bookkeeper tells me "the ledger goes with the home...not the owner." They are threatening to put a lien on the home for the $111.39 that the previous owners did not pay.

Certainly we are not responsible for these fees. The fees are from dates prior to us closing on the house. I have argued with the title company and the property managers for the association, for the past 3 months. Everyone agrees that the money should not be my responsibility but that since we are the new owners it's our problem to fix???

We moved here from out of town, not totally familiar with our new community.... we pay these ridiculous fees to the title company, trusting that they will make sure everything is in order.........

 

[sleuth]

Somebody please explain to me the purpose of title insurance when you buy a home!!

I know that it is to protect your property over ownership disputes....but isn't it also for any type of loss if there was an error made by the title company??

Bought a house 6 months ago. I have two homeowners associations. The actual community I live in and then a Master Association for the development as a whole. Anyway, at the time we purchased a home, the title company only contacted the small HOA...not the master assoc. Well, come to find out, the previous homeowners were behind in the master association fees...which are now being billed to me! The bookkeeper tells me "the ledger goes with the home...not the owner." They are threatening to put a lien on the home for the $111.39 that the previous owners did not pay.

Certainly we are not responsible for these fees. The fees are from dates prior to us closing on the house. I have argued with the title company and the property managers for the association, for the past 3 months. Everyone agrees that the money should not be my responsibility but that since we are the new owners it's our problem to fix???

We moved here from out of town, not totally familiar with our new community.... we pay these ridiculous fees to the title company, trusting that they will make sure everything is in order.........

I don't know much about it... but I bought my title insurance cuz I didn't feel comfortable with the lady I was buying it from using Power of Attorney over her boyfriend (who was also owner and in prison). I figured if something got screwy with PoA, I didn't want to foot the bill for it.

 

[itsbob]

Somebody please explain to me the purpose of title insurance when you buy a home!!

I know that it is to protect your property over ownership disputes....but isn't it also for any type of loss if there was an error made by the title company??

Bought a house 6 months ago. I have two homeowners associations. The actual community I live in and then a Master Association for the development as a whole. Anyway, at the time we purchased a home, the title company only contacted the small HOA...not the master assoc. Well, come to find out, the previous homeowners were behind in the master association fees...which are now being billed to me! The bookkeeper tells me "the ledger goes with the home...not the owner." They are threatening to put a lien on the home for the $111.39 that the previous owners did not pay.

Certainly we are not responsible for these fees. The fees are from dates prior to us closing on the house. I have argued with the title company and the property managers for the association, for the past 3 months. Everyone agrees that the money should not be my responsibility but that since we are the new owners it's our problem to fix???

We moved here from out of town, not totally familiar with our new community.... we pay these ridiculous fees to the title company, trusting that they will make sure everything is in order.........

Title insurance is ONLY for title or deed problems... what you mention is something different all together..

Agree with what you are saying, but could be thought of as the same as a tax problem.. if you buy a property with back owed taxes, you the new owner has to pay them.. I would talk with a lawyer about goig after the former owners for the money owed. You'll probably still have to pay it, then go after the former owners to get your money back..

Might be something the Real Estate Agent should have checked out.. I just bought a home and contacting the assoc was one of the things that was required.

 

[BTE]

Title insurance is ONLY for title or deed problems... what you mention is something different all together..

Agree with what you are saying, but could be thought of as the same as a tax problem.. if you buy a property with back owed taxes, you the new owner has to pay them.. I would talk with a lawyer about goig after the former owners for the money owed. You'll probably still have to pay it, then go after the former owners to get your money back..

Might be something the Real Estate Agent should have checked out.. I just bought a home and contacting the assoc was one of the things that was required.

Thanks for the info. I did go ahead and put a check in the mail to the association. I certainly don't need a lien put on the house for a measly $111.39!! But it's definitely not a dead issue. Someone will be paying this fee....whether it's the old owner, the title company, or the realtor. But BTE is not paying the fee!

 

[itsbob]

Thanks for the info. I did go ahead and put a check in the mail to the association. I certainly don't need a lien put on the house for a measly $111.39!! But it's definitely not a dead issue. Someone will be paying this fee....whether it's the old owner, the title company, or the realtor. But BTE is not paying the fee!

I'd photocopy the check and send it your realtor.. if it was me.. I'd reimburse you out of my pocket just to make things right..

 

[FastCarsSpeed]

My wife is a Closing coordinator and I just talked to her about your situation.. Your title insurance covers this as long as it shows the proper dates and that it goes to the previous owner. My wife said it should be in Section B of your Title Insurance policy. She stated that sometimes there are stipulations that the insurance doesnt cover that but to look in that section for specifics. Good luck.

 

[Oz]

OWNERS Title insurance is just for this purpose. Your lender probably required that you buy title insurance to protect them, as part of your settlement process. You would have needed to request and pay for an owners policy as well.

If you don't have an owners title insurance policy, just pay the $110 to the HOA, and go to small claims court to get a judgement against the former owners. The HOA should be able to help you document the previous debt for the court.

 

[Dymphna]

BTE, I believe you are right on this. Someone threatening to place a lien for something the prior owner did, or didn't do, definately sounds like a job for title insurance.

Did you contact the title insurance company or just the title company? The title company doesn't want you to put in a claim because it'll mess up their reputation and ability to get title insurance for their customers. They'll tell you whatever they have to to cover their azz.

We had an issue with our title that was discovered when we went to refinance. It was the title company's fault, they didn't file some forms correctly. That was only one of a series of mistakes they'd made, including not paying the HOA the fees they'd collected at settlement. Then we found out they'd failed to pay the title insurance. So making a claim against the insurance was a waste. Of course, a nice letter threatening disbarrment (title company was a lawyer's office) works wonders.

 

[BTE]

Thanks for all the helpful info. I sent the HOA a check and I'll deal with the other stuff to try and recoup our money. I've been on the phone with the title company on and off today. I think I've almost got them to agree to pay the HOA and then they will deal with the prior owner.

Title company has talked to the prior owner and they stated they would send a check a month ago. Like I told the title folks....they didn't pay their bills while they lived here...what the heck is their motivation to pay it now. The HOA isn't going after them for the $ they are coming after me!! When I asked the girl I've been working with if I could talk to her boss....and she answered with a "I can help you." I told her she hasn't helped me for the last 3 months, I wanted to talk to her boss....suddenly she thinks they may be able to pay the HOA and try and get the money out of the prior owners themselves. We'll see.

Either way, my HOA has a check on the way, from me. If the title company sends a check, then I'll have a credit on my account for next quarter. If, in a reasonable amount of time, the owner/title company hasn't sent a check to the HOA, then I guess we'll be going to small claims court.

I just refuse to eat this money, since we didn't even own the home then.

 

[DoWhat]

then I guess we'll be going to small claims court.

I just refuse to eat this money, since we didn't even own the home then.

Is $100 worth going to court.
It is a pain in the ass.

 

[BTE]

Is $100 worth going to court.
It is a pain in the ass.

I'm sure it will be a huge pain in the ass....but it's the principal. I refuse to be bullied with this overdue bill that isn't mine. I'm still in shock that the property management company that does the collections for the HOA can legally put a lien on my home for a bill that they have record of the previous owners having. I've already sent them a copy of our settlement paperwork showing them the date we closed on the house and they can see we settled after the charges were accrued.

I've got a couple calls out to get additional information as to my rights...I'm waiting to hear back.

 

[huntr1]

I'm sure it will be a huge pain in the ass....but it's the principal. I refuse to be bullied with this overdue bill that isn't mine. I'm still in shock that the property management company that does the collections for the HOA can legally put a lien on my home for a bill that they have record of the previous owners having. I've already sent them a copy of our settlement paperwork showing them the date we closed on the house and they can see we settled after the charges were accrued.

I've got a couple calls out to get additional information as to my rights...I'm waiting to hear back.

They can't put a lein on YOUR house for something owed by somebody else. That'd be no different than me running a red light in my car and having a red light picture taken and then selling the car to you and the state sending the fine to you instead of me.

 

[BTE]

They can't put a lein on YOUR house for something owed by somebody else. That'd be no different than me running a red light in my car and having a red light picture taken and then selling the car to you and the state sending the fine to you instead of me.

I agree with you 100%.....that's why I'm waiting for a couple phone calls back to find out my rights. The property manager tells me that they can put a lien on the house and that although they understand that the bill wasn't mine, unfortunately "the ledger goes with the house, not the owner..." We have an HOA meeting scheduled for later this month, I plan on giving them an ear full.

The whole thing is terribly ridiculous. Too bad the old owners aren't still in the area...I'd be hunting them down!

 

[alex]

This is just one of many reasons I refuse to own a home where there are covents and an HOA. There are enough organizations, government, etc telling what I can and can't do in my life as it is I don't need any more.

By the way - what does your HOA do in exchange for that $$?

 

[huntr1]

This is just one of many reasons I refuse to own a home where there are covents and an HOA. There are enough organizations, government, etc telling what I can and can't do in my life as it is I don't need any more.

By the way - what does your HOA do in exchange for that $$?

Don't be so quick to dismiss all neighborhoods with HOA's and covenants. My HOA & Covenants are very open. The covenants take all of about 1 page, including legaleeze. Only things that are not allowed in my 'hood are signs in the front yard (hoa has decided not to enforce that one), living in trailers, pigs (although if Christy and Steve wanted to move in, they wouldn't have to get rid of their walking BBQs) and poultry. Once I elect not to run for re-election in November, my HOA is going to die a quick death.

 

[BTE]

This is just one of many reasons I refuse to own a home where there are covents and an HOA. There are enough organizations, government, etc telling what I can and can't do in my life as it is I don't need any more.

By the way - what does your HOA do in exchange for that $$?

Actually, our community is very nice. Our fees cover lawn maintenance for the common areas. We have a huge lake with an exercise track around it, we have a large swimming pool, basketball courts, tennis courts, beach volleyball courts, and soccer fields.

 

[DoWhat]

we have a large swimming pool, basketball courts, tennis courts, beach volleyball courts, and soccer fields.

Wow, I bet you got a lot of money.
How many degrees you got?

 

[itsbob]

Wow, I bet you got a lot of money.
How many degrees you got?

I didn't realize all this was over $100.. Last owner got over for $100 bucks.. get over it, pay it and move on!!

 

[alex]

WOW BTE - that is quite bit. They don't charge you extra to use the pool or sports areas?

As for living in a area with an HOA I just don't know. Doesn't it open the door for control of property? I mean, yeah the original agreement may not have much written down but can the HOA amend that? What is stop them from telling you what type of plants you can use, what type of fence, etc. ?

 

[BTE]

I didn't realize all this was over $100.. Last owner got over for $100 bucks.. get over it, pay it and move on!!

Actually, I got a call from the HOA today...apparantly the title company sent a check to the HOA as well as the previous owners who also sent the HOA a money order. Mission accomplished. Now....I can get over it.

Wow, I bet you got a lot of money.
How many degrees you got?

We aren't rich at all...quite the contrary...my husband is active duty military....enlisted.....the pay isn't the greatest. At the moment...I'm working part time from home.

WOW BTE - that is quite bit. They don't charge you extra to use the pool or sports areas?

As for living in a area with an HOA I just don't know. Doesn't it open the door for control of property? I mean, yeah the original agreement may not have much written down but can the HOA amend that? What is stop them from telling you what type of plants you can use, what type of fence, etc. ?

The restrictions around here are a little tight....but that just means that our neighborhood looks nice. No junk cars on blocks, no fridge's on the porch, etc. It is somewhat of a hassle when you want to change the appearance of your home or put up a fence...you have to send a request in to both HOA's...our neighborhood and the master association. The fees, I think, are a little pricey, but we get a lot for them and the place always looks nice. And living in the city....these types of neighborhoods tend to keep out the riff-raff. We certainly didn't move here with the intention of finding a deed restricted community. We researched the area based on my husbands duty station and found the best school district...this happened to be it.