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Mama Liz Says -- True Horror Story

By
Real Estate Broker/Owner with Liz Loadholt- AgentOwned Realty- Covering SC
originally posted on Real Estate Brokerages

I have a friend who is going through the below dilemma right now.

We will call the friend, Sam.   Sam bought a lot -- he did not get owner's title insurance.  Later, Sam built a home on the lot.  The lender required lender's title insurance, but Sam did not purchase owner's title insurance.

man on deck Sam knew when he got the lot that there was a dirt driveway at the edge of his lot that lead to a home (owned by we'll say Scott) behind his lot.  What he did not know until this month is that there is a 50' easement across his lot. There had been 2 different title searches done by 2 different attorneys -- both missed this easement.

Please watch the video for full details.

Had Sam purchased owner's title insurance, he would be protected.  But since he didn't, he is out in the cold.  He will never be able to sell his house or certainly not ever get his value out of it.

I know I sound like a broker record, but every purchaser needs owner's title insurance.

Mama Liz's Signature

Liz Loadholt
Broker, SC Certified Trainer, Relocation Director
Co-founder of AgentOwned Realty
]
Liz@AgentOwned.com


843-725-5007


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Comments (11)

Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

He can sue the attorney who certified title to him......title insurance would have been the easy way....but there are other ways to save his investment....

Aug 22, 2010 08:45 AM
Liz Loadholt
Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Barbara --- you are of course, correct -- he can either one or both of the attorneys who missed the easement.  Thanks for stopping by.

Aug 22, 2010 08:47 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Liz,  A little late but seems like he now needs a RE attorney to pursue the attorneys who missed the easement ?!?!

Aug 22, 2010 08:49 AM
Jeffrey Wilson
REMAX Fine Properties - Scottsdale, AZ

This is a prime example of why a Real Estate professional should always be used when conducting a transaction.  In my market in Scottsdale Arizona we are starting to see foreclosure transactions where the previous buyer/seller did not complete the transaction properly and there are various issues with title and the transaction.  Always buy title insurance and always pay attention to your Realtor... and it never hurts to get a second opinion.

Aug 22, 2010 08:49 AM
Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert
I have never NOT had a client receive owners title insurance from the seller as part of the purchase. I thought that was just standard practice.
Aug 22, 2010 08:56 AM
Larry Story ALC
Total Care Realty - Greensboro, NC
Beneath it all is the Land, Covering all of NC

Oh you are soooo right everyone needs title insurance.   I had a client that one time bought a home and while the attorney did a title search everything seemed fine.  After about 7 months in the home there came a knock on the door from the Sheriff's office. Serving foreclosure papers not to them or the people they bought the home from but from the people that sold it to the couple before.  At closing there had been a closed equity line which all of a sudden was filled up and then never paid on!  So believe me they are glad for Chicago Title. 

Aug 22, 2010 10:45 AM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Liz - Am closing on a property tomorrrow. Cash Deal. He asked why there is a line item for title insurance. I likend it to home owner's insurance. Cheap insurance for the ultimate OH - NO

Aug 22, 2010 02:00 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Hi Liz!  I'm with the rest of the group--hire an atty to sue the ones that did the lender's title search.  What a sad state of affairs--I'm sure that this guy will not be able to sell his home with someone else's driveway going through his front yard so, what other recourse would he have?  So sad...

Aug 22, 2010 02:41 PM
Lee & Carol Barbour, REALTORS
Murphy and Hayesville, NC; Hiawassee, Blairsville, Blue Ridge GA - Murphy, NC
Mountain Living Team in Murphy NC and North GA

This is a sad situation, Liz. You don't sound like a broken record though - you can't preach this enough!

Aug 22, 2010 03:14 PM
Michele Miller ~ REALTOR®, LMC, HSE, CHS, SRES, CMRS
ERA Key Realty~Worcester County Realty Group - Worcester, MA
'Helping You Make the Best Move"

Janna is right Liz! It needs to be standard practice!

Aug 23, 2010 01:03 AM
Liz Loadholt
Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Thanks so much to each of you --- we are all on the same page with this one -- 

Aug 26, 2010 08:06 AM