Monday, December 19, 2011

query: can you pay a title for title insurance and they don't provide one

Hmmmm...popular subject this weekend.  Yes, it is possible to pay a title insurance company for title insurance and then they fail to provide a policy.  It shouldn't happen but it does.

I received another query via email this weekend from a real estate agent representing a seller with a PA inheritance tax matter and a refusal from their title insurance company to deal with the matter.  Why?  They have no record of an owner policy.

The good news?  The seller has evidence that they paid for an owner policy.  These folks saved their HUD-1 Settlement Statement and it clearly shows, according to the real estate agent, that they paid a premium for owner coverage.  In PA, since we have simultaneous issue and the title company does acknowledge that they issued a loan policy, this should be a slam dunk when they see they HUD-1.

So, be a smart consumer and keep your eyes on documents and save them because you never know when you might need evidence.  ;)

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