just found out the house I bought has a lien on it by the water sewer department.

I purchased the house in September 2006, it has been vacant for some time, and I have been doing some work on it. Today I found out it has a lien on it by the water department for about $300.

The lien was placed on the property in October 2006, after I took possession, so that is why the title search and lawyer did not find it. But the "Date of Work" was in June 2006, before I took possession. So am I now stucked with having to pay for it?

Is the title insurance cover only liens filed before date of closing or does it deal with date of work before closing and date of lien afterwards?

Thanks,

MC

Since your here in Florida, you and your agent need to review the Sellers Real Property Disclosure Statement. You also need to know what type work it was.

If you can show that the sellers knew or should have known about the work, it is possible you could collect from them. However since you indicate it was vacant for some time... they may well not have known.

Bottom line is, that to collect you would have to file a legal claim.. In all probability that would cost you well over $300.00, probably several times that unless you were able to make a claim in the Small Claims Court. If your sellers are no longer living in the area... service on them could be expensive.

If this was for "work" and not just fees, then you are the primary beneficiary. In any case your "best" move is to probably pay it and forget about it. How much is the hassle worth to you? Do you enjoy beating your head against a stone wall? For $300.00 is seems to be a no brainer for me... just not at all worth any effort or worry for that amount. Select your battles... this is probably not one worth entering.

I generally verify with the water company that a final reading has been done and I make sure payment shows on the HUD. I have had a couple slip through though and my buyer gets stuck. I call the water company and beg to get the bill reduced for my client. If they are still upset I then offer to split the bill with them. In the end though, I will pay the bill if they feel cheated. I don't need an angry buyer out there trashing my name.

Check with the Title Co. and see if you had "Owner Extended Coverage", also called "Gap Coverage", it might cover you after closing.

If the previous owners bought a new place they might be able to put the lein on that one and take it off of your property. I know it's been done before- but I'm not sure how it's worked with timelines/closing.