Can I sue for damages for being sold a house with a lien?

[Michael Kiley]

Delighted to receive 5 offers when we put our Cleveland rehab up for sale this spring! Needless to say, it went for well above asking price. So I called the title company to start service and to my dismay, I come to find out there was a 30k lien on the property when we bought it! Fortunately, my title insurance company said they will clear up the lien but said it's a process that could take "5 days to 5 years"

Moving on... we let the buyer and her 2 huge dogs move into the house until we can deliver a clean title. She pays a tiny fraction of the market rent. I'm worried she might walk and I'll be starting at the beginning if this thing drags on.

My question is this: Is the title company that missed this lien of record liable for damages if this thing falls apart? After all, my livelihood is renovating homes and most of my capital to start the next flip is tied up in that house. 

[Ned Carey]

Arguably yes, but what are your damages? 

If the insurance pollicy addreses the title issue you only have theoretical damages. I don't even know if that will get you into court.  Even if it does that is going to be hard to prove.  You are not going to get any money because of a minor pain in the butt dealing with this transaction. 

Now if it literally takes 5 years to get resolved, you may have a real issue to fight over. You have to chose your battles in life. Most are not worth fighting.  My guess is you are not even close to that point and not likely to get there. So relax and focus on somethiing more productive.