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All kinds of questions pour in when it comes to Title Insurance.  The home buying process is complicated enough and little is known about the nuances of Title Insurance.  We have taken some common and not so common questions and relayed the Q & A here.

Undisclosed Water Damage

Q: My husband and I purchased a home four months ago as-is. The sellers’ disclosure declared no basement water leakage.  We noticed elevated boards for drying items but were informed they were just a precaution.

The inspector reported the basement was dry and gave the house a passing grade.  He noted to inquire about paint bubbling on the walls and some water stains on the floor.  The seller assured us the disclosure was accurate.  Now, of course there is a water problem.

We discovered this is a common neighborhood problem and looked into remedying the damage with several estimates.  Cost range from $8,500 to $10K.  This sum guarantees a dry basement so that we can finish the surface.

Do we have a case for civil court or small claims proving the disclosure was fraudulent?

A: Sadly, details of home nuances are misrepresented quite often in seller disclosures.  It’s disheartening, but sometimes it’s best to correct the fixes yourself.  The money is costs to hire a defense lawyer many times outweigh the cost to simply repair the item yourself.

Option 1: An alternative is to hire a lawyer to draft a “threat letter” suggesting you are going to sue if an amiable solution isn’t found.

Option 2: Another option would be to go to Small Claims Court. You may not be able to get all the money back for legal fees and repairs, but some costs may be covered.  In this case, title insurance does not cover your legal fees since it is not an issue with the home title.

Have any other questions regarding the home buying, selling, or title questions, contact Acuity National Real Estate Solutions, LLC today at (502) 238-7500.  We provide our clients the best of both worlds—old-fashioned professional excellence supplemented by the cutting edge technology necessary for an optimized process and smooth, speedy transactions. In today’s market, you need an agile title and closing partner that can still keep its feet on the ground.

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