Title Insurance Easement

MossRoad · Oct 2, 2003

i just couldn't see a problem with a buried gas line..but some folks seem to?? 

Here's why some folks are scared of gas lines. Scroll down to the bottom of the story and there are many links to more stories related to gas line explosions. While the odds of it happening to you are slim, people remember these horrific stories and are forever leary of gas lines.

kensfarm · Oct 2, 2003

Isn't there something called full disclosure.. seems to me you'd have a case against.. the previous property owners.. the selling realitor.. and or the title company. Someone knew it was there.. title company should have caught it if they did the proper research. The easement lowers the value of the property.. they didn't disclose that information.. and you got taken. Do you know how much was paid for the easement.. I'd consult w/ some legal's who have dealt w/ this before.. def. isn't right.. and against the law! The bank could even default your loan if they thought the difference in $ was great enough not to cover the loan.

Currmudgeon · Oct 2, 2003

( What I am wondering is what has happened in the past with other people when the title insurance company screws up. )

I'm not a lawyer. If you purchased a property and there is an encumberance on the property that you had not been made aware of, and that the title insurance company and/or surveyor did not discover, then I would argue that your professionals made an error or an ommission in their work.

You can't get compensation from the gas company, because they obtained a legal easement and are presumably in compliance with its terms.

You are due compensation for the faulty work of the Professionals you hired to protect you. Your land is arguably worth less than the amount you negotiated in good faith. You could seek damages against the Title Insurance Company - that's what you bought title insurance for in the first place - or the land surveyor.

A fair value for your loss might be the value of the land (not the buildings) occupied by the easement.

You'll need to retain a lawyer to fight this out.

Maker102 · Oct 7, 2003

Sorry Guys the computer gave its last gasp so had to get that fixed before I could answer. Anyway I went to see the Title Insurance Company Lawyer just went to listen. He explained that they were in the wrong and that it was their fault. He also wanted me to name a price to make this problem go away. Now I am back to square one. If I pull in a lawyer from the outside he is going to want at least a third plus expenses. Any Ideas?

Henro · Oct 7, 2003

I would talk to someone with expertise in real esatate in your area and see what the impact of that gas line would be if you were to sell the property today.

That would give you a baseline for what is reasonable and fair, etc.

Then you could float a higher number and see what the response is...or take any approach you like...with some idea that you are being reasonable in what you are doing.

You could always get a lawyer later if the title company is unreasonable in what they are willing to do for you.

Around here the lawyer might get about 40% of the settlement... /forums/images/graemlins/frown.gif But if there is no other way [sounds like there is in your case] 60% of something is better than 100% of nothing... /forums/images/graemlins/smile.gif

kensfarm · Oct 7, 2003

How about calling the Gas company and see how much they would have to pay for an easement today..

MarkV · Oct 7, 2003

Keep in mind that most easements not only effect selling price but will restrict what can be done on that part of your property. If you want to put a pole barn or sub-divide that part of the property, buildings will most likely not be allowed on the easement.

MarkV

TimSullivan · Oct 7, 2003

Sorry Guys the computer gave its last gasp so had to get that fixed before I could answer. Anyway I went to see the Title Insurance Company Lawyer just went to listen. He explained that they were in the wrong and that it was their fault. He also wanted me to name a price to make this problem go away. Now I am back to square one. If I pull in a lawyer from the outside he is going to want at least a third plus expenses. Any Ideas?


Basic negotiations rules tell me it is their responsibility to make an offer. Once you get that you can sit down with a lawyer and anyone else to determine if the offer is fair. Make sure that the lawyer is hired by the hour and do not let the lawyer do the negotiating. Two lawyers in the same room will take far more time to solve the problem.

Currmudgeon · Oct 7, 2003

( He explained that they were in the wrong and that it was their fault.)

Good. That sets the stage for everything that follows.

( He also wanted me to name a price to make this problem go away. )

Can you estimate the price of your raw land, without the buildings. Take that per-acre price and apply it to the area of the easement. That figure may be a little high, but you want to start high. The Title Insurance company sure won't tell you, "Oh, you're not asking for enough."

Your realtor should be able to give you a back of the envelope per-acre price for your area.

The Title Insurance company should have an appraiser on staff. He should be able to come up with a number, quickly.

It's not going to be a real big number, anyway.