QUESTION

Is a lien from previous owner/property overseen by escrow transferred to new property owners?

Asked on Sep 16th, 2017 on Real Estate - California
More details to this question:
Our home loan Refinancing was denied because a legal doc/lien from previous owner on property. Escrow Co. says they missed that doc because it was turned in by one of the owners (husband) 1- day before they OK our purchase. (Previous owners in separation process at time of sale.) SHould the escrow company be responsible for clearing this out? We want this lien off our loan!
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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Did you receive title insurance when you bought your home? If so, then this should be covered by the title insurance. If the title company does not agree immediately to take care of it, then you will need an experienced real estate attorney to persuade the title company to do the right thing. If you don't have title insurance, then you will need to sue the sellers. The use of the word "grant" in the deed, triggers a statute which establishes a warranty by the sellers that they did not create any liens on the property which are not described in the deed itself. When you sue the ex-wife over something the ex-husband did, you will have her as an ally to get him to do the right thing. Dana Sack  
Answered on Sep 19th, 2017 at 10:43 AM

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