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  1. #1
    Join Date
    Dec 2018
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    2

    Default Is a Title Company Responsible to Detect Unpaid Dues

    My question involves real estate located in the State of Florida

    This is my situation. I closed on a property on July 2018. It was a regular sale and regular finance. no, foreclosure or Shortsale. This property pays two separate associations. One for the HOA and one for a clubhouse. During the due diligence performed by the Title company, they contacted the incorrect managing company for the clubhouse and failed to discover an outstanding debt for the clubhouse dues. I know they contacted the wrong company because they said so on an email conversation. Now I received letters from the clubhouse lawyers with the intent to record a lien on my property. Each month the amount is going up exponential. I put a claim to the title insurance but they denied coverage. I requested reconsideration, but they are procrastinating the issue. They say they are investigating but it seems that they are investigating in how the could find a way out of paying. My question is:
    Does the title company bares any responsibility and should they pay for there error?

  2. #2
    Join Date
    Sep 2010
    Posts
    18,915

    Default Re: Is Title Company Responsible

    It would seem the seller is primarily responsible. Have your lawyer contact them. This doesn't seem to be a title defect as the lien was not placed prior to the closing. The title company does seem to have fallen down on their job and likely could be held liable for any interest/penalties in the arrearage, but the underlying debt appears to be an obligation of the seller.

  3. #3
    Join Date
    Dec 2018
    Posts
    2

    Default Re: Is Title Company Responsible

    I understand that in Florida, the HOA Dues, Taxes, Etc. are the responsibility oh the homeowner. I have been unknowingly burdened with that responsibility due to the actions of the title company. I thought that the whole purpose of contracting a title company was to take care of this situation. why do I need to chase down the seller make him pay his prior responsibilities? the title company should be doing this. I would believe that the title company has full responsibility for this situation.

  4. #4
    Join Date
    Sep 2010
    Posts
    18,915

    Default Re: Is Title Company Responsible

    I can almost guarantee that you signed a statement explicitly holding them NOT responsible for such issues. Dig through your documents.

    Frankly, you need to do the following:

    1. Pay the arrearage so that things don't accumulate more.
    2. Contact the seller about the deficiency up until the time you purchased the house.
    3. Contact the title office to see if they will cover the difference.

    You may need an attorney. You appear to be way too emotionally involved.

  5. #5
    Join Date
    Nov 2013
    Posts
    6,198

    Default Re: Is Title Company Responsible

    Quote Quoting jcporsche
    View Post
    I understand that in Florida, the HOA Dues, Taxes, Etc. are the responsibility oh the homeowner. I have been unknowingly burdened with that responsibility due to the actions of the title company. I thought that the whole purpose of contracting a title company was to take care of this situation. why do I need to chase down the seller make him pay his prior responsibilities? the title company should be doing this. I would believe that the title company has full responsibility for this situation.
    The burden is not on the title insurance company. The title insurance is only responsible for moneys owed that are public records of liens. Since the association did not, at the time of your sale, place a lien on the property, the title company would have no way of knowing that there was money due to the association.

    Your recourse is against the seller.

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