Expert: Dick Dennis - 6/23/2006

Question
We heard from our attorney, and the Realtor who marketed our property. The attorney said we are liable for the repayment of the sewer lien because we were the owners of record at the time of the sewer repair. This still just doesn't seem right to us. Why wasn't this checked and rechecked before closing.  Apparently the Title Company paid the city for the repair, but now they want reimbursement from us. We know we should trust what our attorney tells us, but it just doesn't seem right to us. Then why do people pay such ridiculous fees for Title Insurance?
-------------------------

Followup To

Question -
Three (3) years ago we sold our home in NJ and were represented by an attorney, as were the buyers. Before the closing it was determined the buyers' attorney would handle the loose ends of the deal making sure the property taxes were paid and there were no sewer or water liens on the property. Of course the buyers also had Title Insurance. Three years later, we received a phone call from a gentleman who said he was from the buyers title insurance company, and that we owed somewhere in the neighborhood of $1000 because of a sewer lien on the property. Is this possible? Could we truly owe this money? It sounds to us as though the Buyers' attorney dropped the ball on this one, and now they're looking for a scape goat. They threatened to make an attachment to our credit score if we do not comply. I have a few calls into our attorney who handled this closing, but he has yet to respond. Any advice would be greatly appreciated.

Answer -
Keep after your attorney. Do not let him ignore you. Send him letters via certified mail. If you get no answer, go to the local or state bar and ask them how you can get your attorney to get on his horse. Be sure to keep copies of everything you write and receive. YOu need a paper trail to protect yourself. Also see if the title insurance company can help you. If they gave a clear title to the buyers, then ask them how is it possible for a lien to show up three years later.

I do wish you well.

Dick Dennis

Answer
Someone knew that sewer lien was going to go in BEFORE you bought the property and the seller and the attorney SHOULD HAVE TOLD YOU THAT WAS GOING TO HAPPEN. Get another attorney to straighten this out. Trouble is, the new attorney may charge you the same amount as the lien. However, if you take it to small claims court and you win you would get your costs reimbursed.

Here in California, if a lien is about to be put on the property, the buyer must be advised of it. It's too bad SC is so far behind the times.

I do wish you well.


Dick Dennis          dixiedee13@aol.com
www.oldproblemsolver.com