Missed Lien by title leads to missed profits

[Eric Chan]

Purchased a property through a probate sell with title insurance a few days after closing I had a buyer set up to by my property for 165K profit, (Another investor ready to go) they had money in escrow and we were about to close pending clear title ( i had a binder was thinking easy money). Title comes back and says it looks like they missed a lien from back in 2018 and they need to resolve it before we can move forward with the sale. They don't have a time frame. Buyer of course walks and all monies are refunded.  

If the property ends up selling for less because of this now lien issue that was not suppose to happen, do I have a vlaid claim  to the missed profits + Holding cost? I made a claim but it was denided stating : 8. LIMITATIONS OF OUR LIABILITY
. . .
(a) If the Company establishes the title, or removes the alleged defect, lien or
encumbrance, or cures the lack of a right of access to or from the land, or cures
the claim of unmarketability of title, or otherwise establishes the lien of the insured
mortgage, all as insured, in a reasonably diligent manner by any method, including
litigation and the completion of any appeals therefrom, it shall have fully performed
its obligations with respect to that matter and shall not be liable for any loss or
damage caused thereby.
. . .
To the extent that you are requesting compensation for the Alleged Damages, please see Condition
8(a) of the Policy which provides the Company with the right to establish title as insured in a
reasonably diligent manner without being responsible for any loss or damage to the insured. You
submitted a claim on August 27, 2024. As the Company is working to cure title in a reasonably
diligent manner, the Company would not be liable for any loss to the Claimant.

[Clayton Silva]

Definitely want to consult a title attorney on that, but this is why I tell people to go with large well funded title companies rather than the cheaper local ones.  Insurance is an expensive pain in the *** but man are people grateful they have good insurance when they need it.  Title insurance is no different.