Thousand Oaks, CA asked in Real Estate Law for Arizona

Q: Q: If the title insurance company decides to return the amount of money we paid for the property, do we get to keep it?

Hello, we purchased a piece of land with an easement through the neighboring community to access the property. Both the land and easement were listed as covered under the title insurance (standard ALTA policy), with the indemnity amount maximum the amount we paid for the land. The HOA has taken the position that the easement is not valid for general egress/ingress to the property. The insurance company accepted the claim, but has stated they have the right to pay out the indemnity amount. The property has increased in value over the past 8 months we've owned it. So the question is, if the title insurance company decides to return the amount of money we paid for the property, do we get to keep the property? or does the title company take ownership?

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1 Lawyer Answer
Anthony M. Avery
Anthony M. Avery

A: Hire an attorney to read your Title Insurance Policy. Usually you keep the money paid out for the claim, and keep whatever clouded title you had at the time of insurance issuance. But you probably have significant issues to deal with in the future with the real property, which will cost money and trouble. Right now you cannot convey clear title.

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