If a deed restriction such as a Planned Development shows up on your property and title did not report it at closing is the title company liable and if so to what extent?

Answer

A Planned Unit Development (PUD)is typically a planned community, but not necessarily generally a condominium community.

If a title agency did the title work and missed any pertinent information that could cause a loss of value to the property or marketability of the property, you may have a claim.

However, if it was disclosed to the buyer in the sales contract that the home/property was located in a PUD, it would be hard to file a claim of loss against the title agency, since you knew it was an established community of some sort or it was implied. ie. "Welcome to Silver Springs Community" on the entrance sign when you drive up.

Additionally, if the borrower was told that they would have to be approved for membership or pay fees to a homeowner's assocation in conjunction with purchasing the property as a non-elective, it is "implied" that the property is not located in a non-community organized neighborhood.

In order to file a claim, there has to be a loss. A loss of value, a loss of marketability, etc. You should contact an attorney for their legal opinion on it.

Personally, I don't see where purchasing a property in a PUD would adversely affect the title or the marketability.

And, I can't imagine that there wasn't a pre-determined or "implied" factor that the property was part of an established association/community prior to purchase.

First answer by TitleGeek. Last edit by Savemoney101. Contributor trust: 107 [recommend contributor]. Question popularity: 30 [recommend question]