Title issues frequently pop up during residential real estate transactions. The buyer will usually need to have title coverage for both themselves and the lender financing the transaction. The company providing title insurance will do a background check on the property and correct any issues that would prevent them from underwriting a title policy.
The curative process is how a title professional removes a lien or otherwise addresses title blemishes that would make a policy dangerous to insure. Unfortunately, sometimes oversights during the curative process can lead to problems for the person who bought the home.
Inadequate research could hurt a company’s profit margin
Someone handling curative needs for a title company may deal with dozens of different properties and policies every day. They call county recorder’s offices, lenders, courts and private lien holders to verify information and get a property to a point where the company can insure it.
If someone doesn’t dig deep enough, they might rely on the previous title insurance policy’s report instead of verifying the chain of possession or other details themselves. Inadequate research or inaccurate internal records at a title company could complicate claims brought by the policyholder in the future.
Delays in title coverage could affect your finances
If an individual or business brings a seemingly valid title claim against your property, that puts you in a dangerous financial position. You need your title insurance coverage to help you by paying for a lawyer to represent you.
If the title company delays processing your claim or tries to deny your claim, you may be at a disadvantage during any court hearings you have to attend. Problems with the internal records of the company or gaps in their own documentation and research might lead to bad faith insurance practices that put you as a homeowner in a difficult position. Knowing that you can push back against title insurance bad faith practices can give you hope during a difficult time.