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Mathew Said:

Would title insurance cover cost of discrepancy of lot size after purchase?

We Answered:

If you purchased the expanded title insurance you might have coverage available. However, the best way to figure this out would be to call the title company and make the claim. There is no penalty involved with making a claim. If it isn't covered, they will let you know.

Also I would make sure that that survey was accurate. Did they "pin" the property? If they just got the survey from county records and did not have the property actually "pinned" (pinning involves the surveyor actually coming out and measuring everything and placing pins along property lines--this type of survey usually costs at least $2,000) their claim to you might not be valid. Also the period of time that this has occurred might make their claim invalid.

My best advice hire an attorney that specializes in real estate. Check with the local realtors association for recommendations on local attorneys. Usually your first consultation is free. Make sure that you bring your title insurance in, the correspondence wherein your neighbors are making their claim, your purchase contract, any property descriptions you were given, results of any and all inspections of the property and all of your settlement documents to the appointment.

A couple of years ago one of my clients had a similar situation and the real estate attorney in that case was able to obtain a settlement from one of the sellers recouping their loss. You should not assume that it would not be cost effective. This attorney ended up recouping over $50,000 from the seller which paid off the neighbor and left my clients with a nice savings account for their troubles and paid the legal fees.

One more thing--if you end up that you have to settle this with your neighbors by paying them, make sure that an easement or other document granting you that piece of land is actually legally drawn and recorded with the land records office so that you do not end up with a mess when you go to sell the property.

**Even if the settlement office went out of business, I'm sure the title company did not. Check your policy & google the name of the company to find their website & contact information.

I hope this helps. Good Luck!

Adam Said:

on closing cost how much should title insurance cost on a closing price of 156k.?

We Answered:

Are you selling or refinancing? If you are selling, $917 could be a little high, depending on several factors. If you are refinancing, that amount is about $250 to $300 higher than in my state with the title companies I deal with. A difference of a hundred dollars or so is worth asking about but hopefully not a deal killer. Look at the big picture.