Wednesday, April 23, 2008

query: the condo I bought has no insurance, would the title company be involved

This isn't cut and dry, but in my opinion, the title underwriter company wouldn't be involved. That's because matters related to the condominium would be an exception to title insurance coverage.

On the other hand, the title agency might be involved IF as part of their due diligence and examination, they were to obtain a condominium resale certificate. I am only familiar with PA condo requirements so you'll need to check your state's rules. In PA, the seller is responsible fo obtaining a resale certificate for the buyer. The certificate will disclose the amount of insurance and the insurance carrier. The buyer has an obligation to review the certificate prior to closing. A title agent should be reviewing the certificate also because they'll need to look for lienable items.

Whether or not the title agent has liability that would overcome any liability of the seller or the buyer, I doubt it, but I think you should look into the matter.

2 comments:

Valerie Crowell said...

Out in the Golden State, the HOAs carries the hazard insurance. A cert can be obtained from the management company, or the board, whatever situation applies. The individual homeowner would need to carry their own insurance for the contents. It is essentially a renter's policy and costs roughly the same.

If there is an institutional lender, there's hazard insurance on your project. They wouldn't have let your deal close without it.

Diane Cipa said...

Thanks, Valerie, for jumping in and adding that important info which also applies in PA.