Paid for title insurance, attorney did not purchase, and title is not clear like the attorney thought

We bought a home and paid for title insurance, but the attorney did not obtain it. Now, the title isn’t clear, and we essentially bought half a home without any insurance to fix the issue. The attorney says we need to get the heirs to sign it over and he will pay all their judgments so the transfer can happen. They obviously have no interest in doing this because who would give away 1/4 of a $260,000 house for nothing? The attorney claims paying their judgments is an incentive, but those judgments are only around $10,000 for both heirs. They also own nothing, which is why they haven’t paid their 25-year-old judgments. Has anyone been in a similar situation? We don’t know what to do. I’m in NC where you need an attorney to close, and suing an attorney sounds like a massive headache.

That sounds like a nightmare. You definitely need to speak with another attorney who specializes in real estate to get a second opinion on your options.

I’m really sorry to hear that. It’s frustrating when you think you’re protected by title insurance and then find out it wasn’t even obtained. Have you thought about contacting the title insurance company directly?

In NC, if the attorney failed to obtain title insurance, you might have grounds for a malpractice claim. It could be worth investigating that route.

I’ve heard of similar situations where the attorney dropped the ball. You might need to file a complaint with the state bar association if they are not helping you.

Make sure to document everything. If the title was not cleared, you might have a case against the attorney for failing to perform due diligence. Don’t wait too long to act.

This just reinforces why it’s important to do your own research and not rely solely on an attorney. Get a second opinion ASAP.