good general query via e-mail

Hi,

I read your blog about title insurance. It is very helpful.

I have 2 questions to ask:

1. I did not buy title insurance at the purchase. can I buy it now (later)?

2. My friend bought a house, and after closing he was noticed there was an unsettled mortgage made by previous owner against the house. The title company's search did not find and report the said mortgage. If my friend did have the title insurance, will the title company be held for the liabitiy?

Thank you in advance. Looking forward to your reply.

John

Both are great questions, John.

Yes, you can buy owner title insurance later if you did not buy it when you made the purchase. The title agent will need to re-examine title and then the premium should be based upon market value of the property. In PA, if you don't have a current appraisal, we would work out a market value using the tax assessment. Also, in PA our title rates are regulated. They may not be in your state, so be sure to shop around and get quotes in writing.

Unsettled or unsatisfied mortgages are one of the most common post-closing issues title insurance companies deal with. Your friend should call their title agent and also file a formal claim directly with the title underwriting company. That's the company whose name and logo are on the policy jacket.