Lot Size Discrepancy
Situation: Closed Escrow - city says the lot size is less than public records indicate - NOW WHAT?
Representation: I represented the probate estate (listing agent). The buyer was represented by another brokerage.
Just closed escrow on a probate property. It was a fixer; the zoning indicated that the parcel was zoned for units. Tax records indicate that the lot size is 6408 and according to the buyer's agent the buyer was under the impression that 2 units could be added to the existing single family residence.
AFTER escrow closed the buyer's architect went to the city and the city claims that the lot size as indicated in tax and public records is incorrect and that part of the lot has been dedicated to the city of Burbank for the alley. BUT there is not an easement shown on the preliminary title report.
What happens next? I really don't know, BUT the buyer probably should have gone to the city PRIOR to closing escrow. Will keep you posted.
UPDATE: I spoke to the buyer's agent this morning and he has contacted the title insurer to find out why the city's easement for the alley was not reflected on the preliminary title report. The issue has been sent "up the Fidelity Title" ladder. AND by the way both buyer and seller paid approximately $1500 for title insurance
UPDATE: The title company declined the buyer's request for coverage; I have been "talking" with the title company for several weeks as of 9/19 the title company told me that they are retracting their letter of declination of coverage and will send the buyer a settlement offer.
UPDATE: For me, this has been an ongoing nuisance for over a month; for the buyer (who was not represented by me)... this has certainly been the cause of untold anxiety. With the assistance of a persistent Realtor and a great Title Representative we were fortunately able to assist this buyer with this problem. THE BUYER'S CLAIM HAS BEEN PAID!!!! And unfortunately the sad fact of insurance life is that most insurance companies say "No" before they agree to pay a claim.
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12/3/2008 8:29 AM
Los Angeles Real Estate Blog wrote:
What is title insurance? Title insurance insures the homeowner (and/or lender) against losses due to defects in title, which were unknown when the policy was issued. This insurance is effective as of the policy's inception date and covers defects arising prior to ownership. The policy terms outline which risks are covered. The title company will pay claims on covered losses (within policy limits). Why does a Realtor need a relationship with a title representative? In any business there are different philosophies as to whether you should divide your business or if most of your business ...
I'm guessing that the title insurance company would have to become involved. They should research and even measure the property to make sure that everything is fine..Isn't that what title ins for?
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I spoke to the buyer's agent, the buyer is filing a claim and I agree that this is what title insurance is for - but let's see the title company "step up to the plate" - will keep you posted - I am assuming that as with ALL insurance companies they are great at collecting premiums but are reluctant to pay claims.
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We had problems with a discrepancy on our lot in South Carolina.
That is a big mess for any new owners. I suggest when buying a lot or a house to check out the plot carefully to avoid potential legal problems.
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