I would look on the preliminary commitment for title insurance and see if there was a mention of it there. If it is an assessment on the property it should have been there. If it was, and you just didn't notice, then no, the title company isn't liable. If it wasn't on there, I'd say that you definitely need to call it to their attention. Let us know!

Angie

Special assessments are paid to the assessors office and part of the taxes. Who is this money paid to?

Also recommend you check your contract with the builder and see if you see the wording "front foot benefit charges," which refers to the sewer hook up. Have you checked with your neighbors to see if they are in the same boat? Definitely worth a call (or two), I would start with the assessor's office to see if this is something a builder typically pays. It does sound like a special assessment. I would want to know when it went into effect. If it went into effect when the title transferred, I am not so sure the title insurance would be any help. I would also be curious why the builder didn't disclose the charge. Good luck and let us know what you find out. (Get you coming and going, don't they?) Suz

The title insurance should definitely catch a sewer assessment. Its like "cda44" stated: If the title insurer did notate it on the search, then they are not liable.

In Washington, it is my understanding that sewer assessments may be paid to the local assessors office but are NOT considered part of realty taxes. The assessors office is merely the collector. Hence, sewer assessments are not eligible for federal tax deductions because they are considered fees. Its been a while since I studied this so I could be wrong, but that is the way I remember it.

This is not necessarily a title insurance issue. They very likely disclaim this type of assessment if it is not on record. If the builder was paying on time, then there might be nothing on record. If the builder was in defalt, then you would expect something to turn up on the title report. Check the report very carefully.

However, it should have been mentioned on the contract of sale from the builder to you. I wouldn't be surprised if the boilerplate language mentions sewer connections or other assessments without itemizing them.

Does title insurance cover my legal fees for a case involving us being sued for a portion of my property via adverse possession?

In 25 years of land surveying/engineering, i have since ZERO cases of adverse possession win in court..There are so many issues besides the using of the property that it usually gets thrown out rather quickly...If you'd like to post the details, i'd like to see the issue

I worked on the appeal of a case where the other partty had been successful with their adverse possession claim. So it is possible to win. And I recently worked on a case where the person was not successful. The adverse possessor met all the elements of the state statute. The only reason the adverse possessor didn't win was because that state has separate law that lists rare exceptions and this happened to be one of the exceptions (very rare case). Neither of the attorneys found it (I was brought in separately). The other attorney was shocked, he had no idea. In fact, the attorney for the land owner told them to settle because they would lose.

It seems like it is much easier to defeat a claim in those states where the adverse possessor has to pay the taxes on the claimed land during the period of possession. That was not the case in either situation above.

what state was this Sue36?

The answer to your question will involve a little research on your part.
1. What type of title insurance policy do you have? Is it an ALTA 92 or an ALTA 98 policy? If it's a 92, then the simple answer is no. ALTA 98 will cover "supplemental taxes for a period before policy date because of construction or change of ownership or use that occured before policy date." Directly from a title company booklet on different types of title insurance.

2. If it's an ALTA 98 policy, then the question becomes is this fee considered a tax? It doesn't really sound like it is, but it's definitely supplemental. In my part of the country fees such as this are not a tax and not recorded as such, and are not necessarily part of the public records a title company would search.

3. Finally--was this obligation recorded and what specifically does your policy say regarding unrecorded fees, liens, etc?

4. Did you receive a seller's disclosure from the builder? (Keep in mind these disclosure forms vary from state to state.) Here people are required to disclose any letters concerning the property from government or quasi-government agencies. A utility company would be considered a quasi-govt. agency.

You need to carefully read your title policy. If you believe you have a claim, contact the company directly and ask how to file for a claim. Also read through your purchase agreement very carefully. Sometimes in the excitement of a home purchase people overlook the small details such as this. If this information was truly never disclosed to you, and your state requires it should have been then I would contact the builder about it.

Why would you not just call the builder and ask him what's going on? He will probably be able to tell you where the disclosure is in your home buying paperwork. If you are not satisfied with his answer, then you can pursue it further.

FWIW, we bought 2 new construction homes...in NYC & NJ...both times we did not pay a specific sewer hook up fee. In our town the developer pays it in order to hook up and have the home serviced by water & sewer. Some may indeed pass it on to the buyer, but if so, IMO it must be in the cost of the house itself, as I have not heard otherwise as of yet...and I know a number of people who also bought new construction.

Someone asked what state the cases I worked on were in. One was Mass. and one was PA.

In the community where i previously lived, the town was going thru neighborhoods and installing sewers, you didn't have to make the final connection from main to house, but ALL owners were assessed the costs payable over a 15 year time frame...In the long run, it is a cheaper alternative to replacing a septic system...