Title company didn't catch a pending lawsuit. Will the court dismiss me since the lis pendens was not filed or recorded?


#1

I bought a home and wasnt disclosed a pending lawsuit. Title didnt catch it and a lis pendens was never filed. Now I am attached to the lawsuit. Will the court dismiss me since the lis pendens was not filed or recorded?


#2

That’s unlikely. You do need to open a claim with your title insurance company. Just let them handle it. These things happen and that’s why you paid for the insurance.


#3

The title company denied my claim saying it was an easement issue. And that a lis pendens was not recorded. So they said they are only required to search recorded documents.


#4

You probably have a CLTA policy which limits coverage of non-recorded items to certain things, like forgery. See: http://www.insurance.ca.gov/0100-consumers/0010-buying-insurance/0080-compare-premiums/title-terms.cfm.
If its an easement issue the prior owner knew about it now sounds like you need an attorney, and that you may need to file a suit against the seller.


#5

I have a ALTA policy


#6

Remember that title companies are insurance companies. You should escalate the matter to a manager. Was the easement disclosed on the preliminary title report? This is also why you want to purchase the expanded policy. Were you informed that there was an expanded policy?? It may be time to hire an attorney to fight with the title company. Like any insurance company sometimes you have to fight a little bit.