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Updated over 6 years ago,
Can I sue for damages for being sold a house with a lien?
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.