PAULA'S SOUTHAMPTON BLOG

WHY DO WE NEED TITLE INSURANCE???---DOES THAT QUESTION EVER COME UP FOR YOU???

WHY DO WE NEED TITLE INSURANCE???--does that question ever come up for you ??? WHY TITLE INSURANCE???

I had a sale here in Southampton Village recently where my buyer was insisting upon not buying title insurance. He felt that it was just another expense that he could choose NOT to buy...I was at my wits end trying to explain, as did his lawyer, why he NEEDED to have title insurance. We finally prevailed and he did get title insurance after all.

BUT, I AM STILL LEFT WITH THE FEELING THAT WE DO NOT REALLY UNDERSTAND THE FULL IMPORTANCE OF TITLE INSURANCE....

I am not a lawyer, so I have always left the explaination of this one to the real estate attorney---then I got a call from the owner of a listing that I have, just North of the Village that has gone to contract and is expected to close on the 22nd of this month.

It seems that the title search came back with an "adverse possession" alert. It was 5 years ago that the owner, my client, put in  a pool and the fence that is required around the pool was installed at the perimeter of the 1 acre lot. It did not include a sizable part of the back of the property and the neighbor, who bought after the pool and the fence were installed, began mowing the property. Not only was there a fence, but there was a privet hedge planted in front of the fence as well!

My client was very depressed after talking to his attorney and he told me that we should not expect the deal to happen....all the bad news you could conjure up about the deal going south was brought up on that phone call.

I listened to him intently, asked numerous questions, i.e. did you see him mowing the lawn there? Does he have proof that he mowed the lawn for years?...all to find anything that may make it seem less of a problem for this worried man.

I had done some research on the law which covers adverse possession and found that there is a new law put in place by New York Governor Patterson a year ago that states something to the effect that the person claiming to own property that is held in deed to another, has to have proof that they are entitled to the property....this puts another light on the rights of someone who has done exactly what my client had done, accidentally, and the burden then goes to the neighbor to prove his right to ownership in the event that they challenge the current title.

Then it dawned on me: Why is his lawyer not telling him this? Why has he not explained that his title insurance should handle whatever cost he may incur....his lawyer had NOT explained anything about the fact that the title insurance has a function far more important than most of us understand. This was clearly an accident that happened--my client had told me he "walked-off" the lot line, where the fence was to go and obviously made a big mistake....MY CLIENT EXPLAINED HOW HE WALKED-OFF THE LOT LINE

 

 

NOT ONLY THAT..... I am sure the neighbor has better things on his mind than to be out there trying to grab a corner of his neighbors property! So I explained what I know about adverse possession and how, unless he believes that the neighbor is trying to take his property, it would probably be a discussion he should have with this neighbor and convey to him the circumstances which he finds himself in....I don't think his neighbor is a thief!!!IT IS NOT THE INTENT OF THE NEIGHBOR TO STEAL

 

Anyone have similar incidents??...Would love to hear them if you do.

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~          

                                     **ALL INFORMATION AND CONTENT IN THIS BLOG IS ORIGINAL TO PAULA I. HATHAWAY.  The views expressed herein are my personal views and do not reflect the views of Douglas Elliman Real Estate

 

Paula I. Hathaway, Senior Broker Associate, Douglas Elliman Real Estate

Southamtpon Village Real Estate Specialist since 1995;  Also Specializes in North Sea, Noyac, Water Mill and Bridgehampton, New York

Diamond , Gold and Chairman's Circle Awards; Top Producer since 2005

 

Click here to see my Hampton's website to see all my listings; please email me or call me for all your real estate needs in Southampton, Bridgehampton and Watermill:  http://www.elliman.com/paulahathaway

 http://www.hathawayhamptonhomes.com

MY REAL ESTATE SHOWS:

http://www.realestateshows.com/671362

http://www.realestateshows.com/671345

http://www.realestateshows.com/651587

http://www.realestateshows.com/flyer.php?id=654265

 

Comment balloon 115 commentsPaula Hathaway, REALTOR, LBA • October 16 2010 09:35PM
WHY DO WE NEED TITLE INSURANCE??? ---DOES THAT QUESTION EVER COME UP…
share
WHY DO WE NEED TITLE INSURANCE??? --does that question ever come up for you?? I had a sale here in Southampton Village recently where my buyer was insisting upon not buying title insurance. He felt that it was just another expense that he… more
DOWNSIZING AMERICA… PROXIMITY IS KEY; Mini-Estates Are Being Created…
share
DOWNSIZING AMERICA: Proximity is key; Mini-estates are being created, right here in Southampton!!! Builders are building them and buyers are buying them---where is it heading? I think we may have a trend here! No more 10, 000 Square foot houses… more
CURBING APPEAL… NOT SOMETHING YOU WANT TO DO!!! (A SECOND TAKE WITH…
share
This is a post that I wrote a couple of weeks ago and I just now found out that the comments were blocked for some reason… have any of you heard about this happening?? I was spurred to go to my old posts to see if any if any of my older posts… more
WHAT "COMFORT LEVEL"??? Where is it? What is it? Where Can…
share
What "comfort level"??? Where is it? What is it? Where can I find it? Finding a "comfort level" for your buyer… How do you do it? Are you satisfied with your approach? Do you have a reputation for informing your… more
DOES "PRICE PER SQUARE FOOT" MEAN ANYTHING IN RESIDENTIAL…
share
DOES "PRICE PER SQUARE FOOT " MEAN ANYTHING IN RESIDENTIAL SALES I had a buyer contact me last week and I referred her to a new member of my team while I was on vacation. She has taken a stance on the idea that we were not doing… more
PARALLEL WORLDS???… Two Leading Indicators follow similar paths!!!
share
PARALLEL WORLDS???… Two leading indicators follow similar paths!!! I was reading a terrific, thought provoking post by Ann Sabbagh this evening: "Is Spring Coming To Real Estate? "… and in my comment to her I… more
ARE YOU OPENING DOORS?… Do YOU Feel Comfortable "Farming"…
share
ARE YOU OPENING DOORS?… Do YOU feel comfortable "Farming" your neighborhood??? In the past 10 years or so, I have been living in a part of Southampton that has become "THE" place for young families to live. They… more
10 Reasons to buy a home now… a perfect time according to SOME…
share
10 reasons to buy a home now… a perfect time according to SOME experts! I agree with that theorem for the following reasons: Prices are lower than they have been for 5 years. Rates are at record lows. With a plan to live… more
Here's What I Do When I Write A Post… How About YOU???
share
Here's what I do when I write a blog post---how about you??? I have put off writing this post for some time because I almost felt that I was giving away trade secrets.. :) But as I go forward in my blogging experience (since '07) I see the value in… more
Ever Have A Friend Ask You To Rent Them Something?… ONE WORD: DON'T…
share
Ever have a friend ask you to rent them something?… One word: DON"T!!! I did and I am still suffering the consequences. After you read this, I have a question that I really want to get answer on: WHAT WOULD YOU HAVE DONE??? First of… more