Q: Do I need title insurance if I can get a warranty deed for a land purchase?
I want to purchase land in Tennessee on a mountain where the drive to the property is a few miles of gravel road put in by the land developer. The road is NOT county maintained. The title company has heard the developer plans to file bankruptcy and is no longer maintaining the roads.
Title company says they will not do title insurance or opinions until there is someone legally responsible for maintaining the roads.
Since these are not county roads, they are basically easements owned by property owners on either side of road.
Seller says he will do a warranty deed, that's all I need.
Is that true? There are no liens, the title is clear. Could I get stuck where it's hard to sell property if no one takes legal responsibility for maintaining the roads?
It's a beautiful piece of property though...
A: Title Insurance only covers a few problems, and never ensures that the access is maintained. Many Title problems that may arise are not insured risks. And making a valid claim on a policy is very difficult. Have you searched the Title yet, or even actually read the legal description and derivation of title clauses? Do you plan on surveying the tract, or has a recent survey been conducted? The cost of maintaining the right of way should be considered, but the description and extent of the ROW should be examined closely. Hire a competent TN attorney to check the Title and actually represent you. Do not rely on Title companies or real estate agents. And if the grantor is bankrupt, its warranty covenants are worthless.
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.