Old Atlanta water lien

[Michaela G.]

Ok, I'm throwing this out more as an interesting situation to show the unexpected stuff that can happen. Since most are in different states, with different laws, this may be completely different for you than for me.  But if anyone has had this happen, please let me know how you handled:

- Am selling a property that I bought in 2009. I did get title insurance. 

- Closing attorney informs me that water dept has a $ 2400 lien from previous owner on it. 

- I contact title company, who investigates. 

- They just turned down the claim, because this lien was only filed in 2014, 5 years after I bought the property. 

- The lien is in the name of ZJ, who owned it for 1 month in 2000 and it changed hands 10 times between his and my ownership. 

I'm in contact with the city attorney, because there's also a Georgia law where a water provider can not put a lien on a property, if the property wasn't in the hands of the owner at the time the charge was occured......Since I owned it in 2014, then I shouldn't have to be responsible for a water bill of a previous owner, if they forgot for 14 years to file this lien.....

Wish me luck

[Tom Gimer]

Originally posted by @Steve McGovern:

You were right to bring it to the title insurance company.

My advice: find a kick (rear) real estate lawyer to investigate whether (s)he'd take it up as a case AGAINST THE TITLE CO for you. Here are my reasons/the facts that bring me to this conclusion:

You purchased a property.

you purchased a TITLE insurance policy. (owner's policy, yes? please confirm. this is important).

the policy indicates that you are free and clear from " encumbrances and liens" that are in existence on or previous to the date that you took possession of the property. therefore, somebody missed it. Namely, somebody who is the agent for that title insurance company.

as you said, every place is a little bit different. The laws vary, the requisite due diligence varies, Etc. If your area has public services that traditionally are in a position to put a lien on a property, then it seems to me that this due diligence should have been performed. On the other hand, if it's some private water company with no real public ties whatsoever and nobody ever searched their records for bits and pieces, then I could be dead off here.

I'm also not saying you should spend you all your capital on litigation. However, the insurance company and or its agents are required to find this stuff for you. get someone qualified to make a phone call to them.

OP said the water lien wasn't recorded when she took title. Title insurance doesn't cover future matters unless you purchase affirmative coverage for same either through enhanced title insurance or endorsement.