Title Insurance … an example for newbies - Posted by Carol
Posted by Carol on December 07, 1998 at 06:01:25:
From time to time I see, or hear, folks pooh pooh title insurance, so I thought on this early Monday I would give newbies an example of why we always spend the few $$ (or, have the seller do it for us!).
Last Jan we purchased a property. Duh. We knew that the then current taxes were in arrears, and our contract called for all such matters to be settled from the proceeds at closing (about 70% bank financing, 30% seller - who had a GREAT DEAL of equity).
In fact, we heard later that the previous private mortgage holder had paid some of the back taxes when the then owner did not in order to avoid problems with the property.
So, we go to closing, nice settlement statement, including a figure for taxes being paid, etc… and when I receive the 1998 tax bill (we pay in arrears), what do I see but the notation “BACK TAXES DUE, PLEASE CALL …”.
Turns out the county had supplied the title company with a statement that no back taxes were due for a given year, but once the “new computer system” was in place, lo and behold, $3400 worth of unpaid taxes showed up.
Well, guess whose problem it ISN’T… ours.
The Title company and the seller can slug this one out.
The county has disculpated itself, since apparently no government agency is required to give you accurate information - after all why should they be?
Just an illustration for those who wonder…