Q: Title company never told us about ROW's found during their search. Can we sue after we have closed on the property?
We purchased land in VA in Feb 2021. We chose a closing company and they did a title search. They told us that everything looked good and that we could close on the property. (to me that means that nothing was wrong with the property). After we started construction, one of the neighbors informed our contractor there were several major Right of Ways through our property and that wherever we put our driveway, the neighboring lodge and guests can use it. I confronted the title company about the newly discovered information and demanded that they send me the title search results. (The title search results were NOT provided to us before or at closing.) They advised that I get a lawyer and they would no longer answer my questions. The ROW's were noted in the title search in the exceptions sheet. Can I sue them for not disclosing that information to us prior to closing? We likely would not have purchased this lot or would have negotiated a much lower price.
A:
First, if you closed with a title company instead of a lawyer representing you, you may lack privity with the title agent. The agent represents the insurance company not you, and I’m unaware of a concept of malpractice for agents. The agent has duties to all sides to complete the transaction honestly, but isn’t your legal advisor on the acquisition.
Second, you need to look at the Exceptions sheet, usually Appendix B, to determine whether the right of way is reported and excepted. If it is, you were informed. You just chose not to read it or retain counsel for a review. If it isn’t, the title insurance policy should step up to defend you. Recently, the title companies seem to be denying those claims and making me sue.
Anthony M. Avery agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
