Yes. Suing the seller is a routine part of claims management.
When you sell real property you give a warranty to the buyer. You also sign certain legally binding affidavits for the title company. The warranties and affirmations made by affidavit give the title company a legal pathway right back to you.
There is nothing wrong with that - after all you have personal knowledge of the property and an obligation to tell the truth. If you cause damage, you should expect the title company to seek recompense from you.