What would happen if a title company did not due a thorough title search and there was a serious problem?

Answer 1

if you bought title insurance, they repay you up to the purchase price, less the mortgage amount (see below).

however, most folk in America don't buy title insurance for themselves, they only buy it for the lender. [It is required in order to get the loan.]

in that case, the loan is paid off and the owner is [let's not say that, ok?]

***
The way modern title companies work is they get a summary [usually the listing is enough] of every document recorded every day. Then their computers list the relevant property information from the ones concerning property [address, tax id number, or whatever is used] and they maintain a massive database of all of it.

Once their base of data is pretty good, the ongoing operation keeps it up to date as of all filings thru last night. It's pretty safe.


oh. :\

Answer 2

You make a claim against your owners title insurance policy.
The information is located on the back of the policy cover. The title insurance underwriter will step in and protect your asset and defend it for you.

If you choose not to purchase the owners policy you have no recourse. You could potential lose your home.
This is why title insurance is always recommend, it a small price to pay for such a large security.

Answer 3

That's why you buy title insurance.