Frederick, MD asked in Real Estate Law and Land Use & Zoning for Maryland

Q: I sold my house last year. Can the new owners' insurance co request that I pay for a claim that THEY made 11 mos later?

Hello, I'm wondering if you can help with a problem we're having. We sold our house last year, and now 11 months later, we've received a letter in the mail stating that we owe $25,000 because of a building code violation on the property. The letter was from a title insurance company claiming that they have paid the fines associated with the violation, but after investigating further, have determined that we are at fault. We do not agree, as the homebuyers refused a home inspection at the time of the sale. They were also very rude and tried to force us out of our house earlier than the contract stated. We even tried canceling the sale, but were told we would be sued if we did so. Could you please help us understand what our obligations are for paying this claim?

1 Lawyer Answer
Thomas C. Valkenet
Thomas C. Valkenet
Answered
  • Real Estate Law Lawyer
  • Baltimore, MD
  • Licensed in Maryland

A: The answer is "it depends." It depends on the terms of your contract. Also, some title insurers slip in a form for seller signature that reads "you are inducing us to sell a policy of title insurance to the buyers..."

We never let our clients sign this. It creates a duty where one may not exist. I bet they are coming after you because you signed this affidavit.

In summary, someone has to read all your contract and settlement documents, and review the violation.

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