Posted by JT-IN on May 24, 2006 at 14:46:33:
Sorry, this is NOT what title insurance is for…
From the buyers perspective, this may be what the title ins comes down to, but believe me, if the title co or Atty ends up paying this, they will come after you or your company for recovery of funds, plus any fees. They will have a slam dunk case for it too.
You may discuss with the title co or Atty telling them that you just don’t have it to pay. The Atty or Co should pay this to get the deal done, but that doesn’t make them responsible for the error.
Try to keep in mind how you would feel as the Buyer if this happened… Who’s responsibility would paying the taxes be…? Of course not the Buyers. You also surely signed an affidavit at closing that stated that if there were ANY ommissions or errors that you would agree to cooperate for their resolution… This ERROR falls into that category, unfortunately.