A client walks into your office. They have a closing they want you to handle on their new home. The only catch? They want to close two weeks from now. Seeing as the client is in a bind you go ahead and accept the file. You quickly send the file to your trusted title searcher, who comes back a couple of days before closing with a problem. The property’s boundaries are set out in a metes and bounds description and it immediately became clear that the boundaries as described conflict with the boundaries of the surrounding parcels. So now it is two days before closing and you have no way of determining what the exact boundaries of the property. What are your client’s options?!
Does the discrepancy entitle them to back out of the deal?
Should you requisition for a reference plan and delay closing?
Request a price abatement? Or
Is this an issue title insurance will insure over?
At Chicago Title we are presented with scenarios like these virtually every day. Fortunately, in many cases we are able to insure over the discrepancy with full coverage for an institutional lender under the Loan Policy and coverage for third party claims and marketability for the purchaser under an Owner Policy.
Some of the key factors Chicago Title considers when determining if we can insure over a discrepancy in the boundaries of the property include the size of the discrepancy, whether there are structures on the area in question, and whether there is or has been disputes over the boundaries between the vendors and any adjoining land owners.
When acting for purchasers and you discover a discrepancy in the property boundaries, remember that Title Insurance with Chicago Title is there to protect your client(s). It is often the fastest solution, allowing your client to close their deal on time and obtain the financing they need.