How to Get Compensation for a Violation of Covenants in a Warranty Deed
- 1). Make several copies of your warranty deed and title insurance policy as soon as you receive information that there is a problem or defect with title to your property. You will need these as part of your demand on the prior owner and title company to address the problem.
- 2). Prepare a letter addressed to the prior owner and your title company describing the problem. For example, an adjoining property owner may claim to have an easement over a portion of your property that was not disclosed in the warranty deed. Indicate in your letter that you consider the easement claim---or whatever your particular problem is---to be a violation of the covenants in the warranty deed and that you want the problem rectified. Send a copy of the warranty deed and title policy along with your letter. Also include in your letter any associated problems, such as a pending loan application for a refinance being held up because of a title problem.
- 3). Seek the advice of an experienced real estate lawyer, if you cannot obtain the cooperation of the prior owner or your title company to address the problem. Provide her with a copy of your warranty deed, title policy and letter you sent to the prior owner and title company. State laws may vary, but in general you can sue the prior owner for breaching the covenants of warranty in the deed. Your compensation will usually be limited to the damages you actually incurred as a result of the breach, up to the price you paid for the property. You can also include in your lawsuit a breach of contract claim against your title company.