Understanding Real Estate Title Insurance and Litigation
Imagine a scenario in which you have just purchased your dream home, moved in, and then the very next morning, you receive a knock on the door.
It’s your neighbor and their lawyer, and they inform you that the very home you have just purchased is partially on their property.
It turns out that the previous owner of your home had built a fence on a part of your neighbor’s property, which means that by entering your own backyard through that fence, you are opening yourself up to the possibility of being involved in a case of trespassing.
There are many cases of homebuyers who rushed into purchasing a home “as is”, only to be confronted with property line disputes after the fact.
The Importance of Title Insurance
The purchase of a home not only involves the property itself, but also the purchase of title. Title refers to the legal ownership of real property.
Title insurance protects homebuyers from financial losses related to the title or ownership of a property.
Real estate transactions involve several risks. Unfortunately, fraud and human error occur in the real world. Someone you have never met or known could claim equity in the property or ownership of the property itself. Typos in the real estate transaction paperwork could mean that your property does not match the corresponding legal documentation.
Undisclosed voluntary and involuntary liens may be held on a property you own. One example of a voluntary lien is a mortgage; it’s what the bank places on the property to give them the right to seize the asset in case the borrower does not make their payments. Involuntary liens may also be placed on homes by creditors, including construction contractors, homeowner’s associations, or even the government tax agency.
These may all sound like nightmares, but they are unfortunately real-life stories as well as examples of what could happen to anyone.
Escalating Real Estate Disputes To Litigation
In the event of an easement or property line dispute, consult with a real estate litigation attorney as soon as possible to protect yourself and your assets.
Upon filing a claim against your title insurance policy, request a property profile containing property maps, which indicate boundary lines. You can also order a survey of your property to help establish boundary lines.
In the event that there are issues with filing a title insurance claim, a quiet title action may need to be filed. A quiet title action will involve a lawsuit regarding the issue of property ownership.
All communication with the other party should be documented in writing, as well as reviewed and prepared with the counsel of a lawyer.
In some cases, the parties in a property line dispute will obtain an injunction from the courts, which prevents trespassing or any action that could impair the value of the property. Injunctions can be quite problematic—if a neighbor obtains an injunction, then you and your property, by proxy, will be legally considered as trespassing. Therefore, seeking injunctive relief is imperative in cases where an injunction is obtained in a property line dispute.
If you have an easement, property line dispute or title insurance dispute, call San Diego Real Estate Lawyer Christopher Villasenor to help you with next steps.
Call Us Today: 619-375-2956
Email Us: chris@sdlawfirm.net
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