Title Insurance nightmare!

[Douglas Harris]

**long post alert** 

I bought a duplex in Washington DC in February (BRRRR). The company that is handling the refi found the different owner of the title other than myself and business. It turns out to be the owner to the connected other two units name is on my deed as the owner ( I'm not sure why my title company did not catch this during the title search)

I reached back out to my title company and was told that they filed an indemnity to fix the deed problem at recording but was rejected. Now the tile company reached out to the neighbor (incorrect deed holder) to sign the deed over. The neighbor agreed that she’s not the owner but is taking forever to sign her rights over to the deed. She is not responsive, however my title company does not want to piss her off as she can just say she’s not signing the deed over  

As you can figure I cannot refi until this is taken care of. I’m looking for any advice. Should I get a lawyer? If I go the legal route will I be able to sue for the money lost for not being able to refi? What can I hold the original title company (that made this mistake) responsible for? Should I avoid any legal action all together?  

Lastly, I have title insurance of course and a copy of my policy. 

[Tom Gimer]

Step 1 is to file a claim under the title insurance policy. Locate the section of the policy on Notice and follow the instructions. Once the insurer is involved (not just the title insurance agent), things tend to happen quicker.

The end result I would imagine, given the stated facts, is a confirmatory deed transferring the subject parcel back to the seller, which will fix the problem with the chain.

Regarding damages for delay, etc., unfortunately consequential damages are not recoverable under a title insurance policy. But the costs (including legal) of remedying this problem would be... so let the title insurer fix this. It shouldn't take long and in the meantime your refi can move forward and can be ready to close once that deed is recorded.