title insurance for a used car vs a "used" home :^)

The main difference is that there are so frigging many ways that someone can put a lien on a house. There are tax liens, workman's liens, mortgages, home improvement loans, personal loans, there could be water district assessments, sewer assessments and on and on. When you buy "title" insurance you are buying insurance that will protect you against undiscovered liens that SHOULD have been discovered by the title company. The only thing they exclude are liens that are not required to be recorded with the county recorder in order to be enforceable. SO they research ALL the legal history of the home/land and track down all the liens that have ever been placed against it and satisfy themselves they have found them all and that they have all either been paid, will be paid, or that the sales contract has provisions to say who will pay any that remain due. There can be 50 or 100 years of history to sort thru.

Contrast that with a car. Just about the only lien that's ever on it is if it was financed. And perhaps a "title loan". And it's rare for a car more then 5 years old to have any significant lien on it, it just isn't worth enough unless it's a limited production Maserati or something. So there is little need to bother with title insurance. Plus any loan where they can really "take the car" would have to be recorded on the title so if it's not there on the title it doesn't exist for any practical purpose.

I assume tearing town and building a new house does not affect the lien history cause the liens affects the land also?

So what you are saying is an unrecorded lien on a house is still enforceable. Did I get that right?

thanks

It won't affect the lien history since the history is "attached" to the land in the recording system. Once it's recorded at the country recorders office against that legal description it's NEVER going to be "erased" as far as the record of it. What happens when the lien is paid off is a payoff notice gets filed by the same legal description. Anyone researching the liens finds the original lien and then they find the payoff.

Unrecorded liens are probably enforceable but when it comes to real estate the laws will be different from state to state. They might only be enforceable for 6 months if you don't record them. If you record them you might be able to enforce them for 18 months or perhaps forever. The key as far as title insurance is that they ONLY insure against liens and encumbrances that are RECORDED and DISCOVERABLE. So if someone gets their kitchen remodeled and doesn't pay the contractor, and the contractor doesn't record the lien and a month later the owner who remodeled sells the house the new owner is on the hook for the cost of the kitchen remodel. Since it wasn't recorded and therefore discoverable it's not covered by the title insurance. The new owner could go to court and sue the old owner but to protect their house they may have to pay the contractor and hope they get the money back from the old owner.

I am not a lawyer and this is not legal advice.

? I assume the reverse protection of the owner against unfinished work is "bonding" of contractor?

ok, thank you anyway

Excellent point. That's why for large complex work you are advised to hire a licensed contractor. Here in AZ a complaint filed with the registrar of contractors gets the contractors attention REAL fast.

I assume in open carry state knocking on contractors doorsteps while carrying a few dozen pounds worth of guns and ammo would be an alternative way to get their attention.

Yes but you have to be careful in such a situation. Merely placing your hand on the butt of the holstered gun can be construed as assault.

It similar to if you were carrying concealed. In that case, merely pulling your jacket back to reveal the gun can, in some cases, be construed as assault.

If the actions of one person puts someone else in reasonable fear of bodily harm, the crime of assault can be charged.

More at

Here's a real law, where I live, (third degree is lowest for Assault)

GW

Back to the non gun toting method:

The registrar pulls the license forfeighting the bond in the process or threatens to do so? Curious what is a typical leverage exerted by registrar's office given that a typical $12.5k bond is not a whole lot in a brave new world of $10k minimum kitchen remodels. I dare not to think what it costs in US of A to augment the wiring say to provide hookup for recessed distributed lights in the ceiling.

I don't recall the details and it may have changed but at one time there was a "recovery fund" maintained by the Registrar. If the contractor's bond wasn't enough or if he had gone bankrupt you could apply for your money back from the recovery fund. I know I was surprised recently to see that the "bond" amounts they require the little contractors to carry are very small, like $5000. I was able to recover from it years ago when the developer who build my house went out of business during the warranty period. I also filed a complaint went a contractor messed up my fence working on the neighbors. Guy wouldn't even return my phone calls until I filed the claim and then he was all over getting it fixed like stink on you know what. Wanted to know "Why didn't you call me before you filed?" when I'd called him several times with no response.

But, do you own the original factory Title that came with the car, or a Certificate OF Title? There is a difference, you know.

that will teach him. hopefully.