This crap happens (not that at it should and you’re correct). I know someone in construction. They leaned a property that the title company just… didn’t see the lien? Property was sold, The lien wasn’t bonded off or anything either.
It got resolved but man, that would have been a mess. I think at that point the new homeowner is on the hook, and would need to get their due by going after the title company?
Yep, I have a good friend that ran into this issue on his home he bought 20 years ago. After 5 years of living in the home and making payments on it, it was finally discovered that there was no clear title to the property going back 60 years…
It took another 2 years to clean it all up, but it required the township, county, and a state agency to get involved to make a couple of problems “just go away”.
If you are buying property, you can get insurance against this exact issue. If the title is found to be incorrect or a lien is on the property then the insurance company has to deal with it.
This crap happens (not that at it should and you’re correct). I know someone in construction. They leaned a property that the title company just… didn’t see the lien? Property was sold, The lien wasn’t bonded off or anything either.
It got resolved but man, that would have been a mess. I think at that point the new homeowner is on the hook, and would need to get their due by going after the title company?
Yep, I have a good friend that ran into this issue on his home he bought 20 years ago. After 5 years of living in the home and making payments on it, it was finally discovered that there was no clear title to the property going back 60 years…
It took another 2 years to clean it all up, but it required the township, county, and a state agency to get involved to make a couple of problems “just go away”.
Title insurance.
If you are buying property, you can get insurance against this exact issue. If the title is found to be incorrect or a lien is on the property then the insurance company has to deal with it.