Bad real estate title search question.

encore06

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Harrogate, TN
Several years ago my FIL purchased a cabin/house and had it financed through the bank, which did the customary appraisal & title search that a borrower pays prior to the final signing and so-forth. FIL put the house up for sale and received and offer. The buyer's loan institution discovers that the house isn't clear that somewhere down the line, before my FIL purchased the house, failed to have their ex-wife (messy divorce) sign off on the house. So now the sale is in limbo while the bank tries to sort out the mess. If this was you what would you do? WHat is his legal options? The bank is jerking him around and I told them to go talk to a different lawyer and let them sue the bank, and whoever did the prior title search.
 

DaveB

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Sep 3, 2008
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Shelby County
Yep, If the original sale was an intentional act to defraud the other party, meaning the ex-wife, I wish you luck because now, she will definitely find out. The Title search folks are on the hook for some amount, and the bank, seeing as how they hired the Title search firm, for the rest.

I will be interested to learn how this works out. In the meantime, start looking for a lawyer you may need one.
 

brmaster

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dont think there is much you can do to the title search company, as if you go back and read, they arent at fault on many search issues that can come back and bite you. when you closed you more than likely signed that document releasing them of any damage or liability in some lawyer legal wording
 

brmaster

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TN, Shelbyville
dont think there is much you can do to the title search company, as if you go back and read, they arent at fault on many search issues that can come back and bite you. when you closed you more than likely signed that document releasing them of any damage or liability in some lawyer legal wording
Your best bet is to try and track down the lawyer you closed with and see if they can locate the EX wife and get her to sign a quick deed as soon as possible.
 

TAFKAP

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Memphis
encore06 said:
Several years ago my FIL purchased a cabin/house and had it financed through the bank, which did the customary appraisal & title search that a borrower pays prior to the final signing and so-forth. FIL put the house up for sale and received and offer. The buyer's loan institution discovers that the house isn't clear that somewhere down the line, before my FIL purchased the house, failed to have their ex-wife (messy divorce) sign off on the house. So now the sale is in limbo while the bank tries to sort out the mess. If this was you what would you do? WHat is his legal options? The bank is jerking him around and I told them to go talk to a different lawyer and let them sue the bank, and whoever did the prior title search.

I believe that not only was a title search paid for by the borrower, but also title search INSURANCE to cover for your loss in this matter. I don't know how prevalent the insurance is these days, however.
 

eightpointer

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Aug 17, 2002
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11,075
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Harrison TN
I went thru tons of stuff when I had to separate some of Dad's land with his sister. Best thing you can do is put it in the hands of an attorney you hire. It will cost you some money but its best.
 

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