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Updated over 1 year ago on . Most recent reply
Looking for advice on a document issue with the title company
Hi BP, new to the forums and this is my first post on here. (Please let me know if this is posted in the wrong place) I am looking for some advice from more seasoned investors like yourselves on this issue I have ran into with my second rental property.
I purchased this property back in February of this year. Three months of owning it with tenants I received a letter from the city stating there was a lead-order put on the property during the previous owners ownership. Another 3 months go by I work with the city on lifting this lead-order after doing lead abatement work. (Keep in mind this lead-hazard order was not disclosed to me at the time I signed all of my paperwork from the title company. Closing was on 2/13 at 7am. Notary was sent to my home by the title company with closing paperwork)
Shortly after completing that process after spending thousands of dollars on repairs, I did pursue the previous owner for fraud demanding a settlement amount. This action was taken due to their being no way they had to property, remote or not and not know about this but there is no proof they did know at the moment. They responded swiftly disclosing a specific document from the city that they received before closing acknowledging there was a lead-order on the property. They signed and dated this document the same day we closed (2/13) Which somewhat gets them out of the picture BUT not the title company.
That virtually signed document was sent to the title company the same day the notary came to my home. With that being said, I was never shown this document, nor did the title company disclose this document which is required by the city for BOTH parties to sign before closing. This document did not come in my package from the title company presented by the notary at the time I signed the closing paperwork.
This was clearly a negligent document issue on the title company which cost me thousands. My escrow officer's manager stated this over our phone call when I brought this issue to their attention but stated they wouldn't be able to do anything unless I pursue them legally....
They are aware that I have/had an attorney so it seems like communication with them has fell off. I have called the manager twice with no response and several emails asking if my purchased title insurance would cover something like this.
I am trying to see the best course of action to proceed with this. I don't know If I should spend thousands of dollars more pursuing or go the city's attorney general with a complaint maybe. Does anyone one know if title insurance would cover an issue like this? Any input or advice would be greatly appreciated.
Thanks,
Tyrone
P.S. Title company is Chicago Title Company