Liens on property

Perhaps someone can offer advice for a coworker..
She and hubby bought thier home in 2006. They are looking to sell and a title search was done, well liens came up however they are liens against the original owners of the house but tied to the property none the less. Anyways they obviously closed and have the contract of sale and title/deed recorded in their name.

The original owners died but the Brother was the executor of the estate..what can they do. The title company went out of business...so they cant help/be sued....

Re: Liens on property

I'm not really sure but isn't that why you purchase title insurance at closing?

Re: Liens on property

Are the liens from before they purchased the house or after.

If before they have title insurance and all they have to do is give their attorney their title policy from when they purchased. As long as that does not show the liens the policy will protect them.

Re: Liens on property

Since the title insurance company is OOB they might have an issue. Those liens should have been picked up by the title insurance and if they were they should have been cleared before they closed....if they were not picked up then the title policy should cover it....did the title company get bought up cause then they need to go after the new title co.

They will probably have a hard time when they sell the house cause I personally would not buy a house with old liens on it that the seller is claiming no responsibility for and the buyers mortgage company will probably have and issue with those liens.