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Oscar Said:

real estate--- the insured?

We Answered:

The buyer purchases title insurance that covers issues that devalue the property. Perhaps a building that is later found to encroach on to the property or a defect in the deed.

The lender purchases insurance to guarantee that the title will cleanly pass from the seller to the buyer thus protecting his/her/its investment. Typically the lender does not care about issues that partially devalue the property since the buyer is on the hook for that to the lender for the full amount of the loan which (now) is seldom more then 80%..

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Violet Said:

My car was totaled on 1/28/10 but my bank still hasn't heard from my insurance company?

We Answered:

I would suggest completing a conference call with your bank and your adjuster - that way there is no more miscommunication. If you want to keep the salvage of your vehicle, typically the bank will want you to pay off the entire loan right away so that they can relinquish their interest in the title - meaning that you would have to come up with the additional $900 right away and get your loan paid off. That is fine because you now get the title. Once you own the car outright you can drop full coverage. So long as the bank is still on the title they can absolutely require that you carry full coverage.

Your email from your adjuster is a little odd, it may be that you are in a different state so your laws may be different. However, there are 2 weird things: 1) a letter of guarantee from your bank is a letter they send to the insurance company guaranteeing that the bank will release the title to the insurance company upon receipt of payment - this guarantees the insurance company that they get the title once they've paid the claim, since on a total loss they are essentially buying the car from you and the bank. If you are retaining salvage though, the insurance company has no need for a letter of guarantee - they just pay the $7500 and let you work out the title with the bank. Your insurance company has no interest in the title if you are keeping the car. 2) The adjuster says that the insurance company will mail you the vehicle's title after your bank sends it to them? That goes back to you retaining salvage - why on earth would the bank send your insurance company the title if you are the one keeping the car?

It definitely sounds like someone somewhere messed up and your insurance company and your bank are not communicating. Protect yourself and make sure you understand what is happening - it is your car, your title, your loan, and your insurance claim. That is why I would highly recommend getting your bank and your insurance company on the phone with you at the same time and get everyone on the same page.

Good luck!

Colleen Said:

PURCHASE AND SALE CONTRACT, CAN THE BUYER BACK OUT...IF?

We Answered:

Likely your purchase contract clearly states that a contingency of the sale is that title shall pass clear of all liens and encumbrances. And less than clear title is a valid reason to back out of a sale despite the fact that a title insurance company will insure the title. The fact that the issue is in error is irrelevant to the buyer as it would become his problem to resolve if the sale went through and he doesn't know the lady either.

If you are feeling litigious, I suggest you sue the title company that improperly cleared the title to you when you purchased the property. You also need to beware that the buyer has grounds to sue you for any expenses he/she incurred in the purchase process as a result of your inability to clear the title. Good Luck!

Lena Said:

Is it normal for the car insurance company to salvage the car and ask for the title at the same time?

We Answered:

. This is standard practice when a car is totaled. I've been in this position myself.
I mailed them the title, and I had my check in a very short time.
You're going to have to trust them.