First some background regarding a friend’s situation:
In the process of selling his home, a title search was done that uncovered several tax liens on his property. He has owned the property since the mid nineties and the title searches done upon his initial purchase and two subsequent refinancings turned up nothing (a total of 3 searches that were clean and 1 that found bad stuff). Each of the four searches was done by a different company. The company that did the first search (when the home was purchased) has very recently filed for bankruptcy. It turns out that he bought title insurance and is now in the process of making a claim to it so it looks like he’ll be OK.
How did three title searches miss this stuff? Isn’t this what title searches are for? There are at least 3 different liens that were placed on the property only a few years before he bought it.
Is it legal (in Ohio) not to disclose liens to a potential buyer?
Will his insurance cover this? The liens total roughly $50,000.
I declined the title insurance when I purchased my home, but I can still get some (for about $1000 more than I could have at closing). Should I?