A buyer in Chester County closes on a property and later finds that the seller had an outstanding municipal lien for $8,000 that was not disclosed or satisfied at closing. The title insurance company missed the lien during the title search. Who is likely liable?
Correct Answer
D) The title insurance company, for failing to discover and disclose the lien during the title search
The title insurance company is likely liable because it failed to discover and disclose the municipal lien during the title search. If the buyer has a title insurance policy, the insurer would typically be responsible for paying the lien or defending the buyer's title.
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