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kudzu9

Does title insurance cover this?

18 years ago

We closed on a home about 6 months ago. It's about 3 years old, but we are the first owners because the builder leased it out to someone who had occupied it with the intention of buying, but never got it together. We bought directly from the builder. Last week I got a notice that a payment was due to cover the assessment for the new sewer connection that occurred when the house was first built. The cost for the connection is set up to be paid over a 15 year period, at the rate of about $100 every six months. Since the account is up-to-date, the contractor was apparently making the payments every 6 months. So...it appears that I owe the county $2400. This is something new to me as this is the first recently constructed house I've ever owned. This obligation was never pointed out to me during closing. It seems to me to be different conceptually from real estate taxes in that I'm making time payments on a charge for a specific type of work that was done, and the payment will end in 12 years when it's paid off (I also can choose to pay the whole thing in a lump sum right now if I want to.) It's almost like a lien on the property, albeit by a government entity, rather than a private one (like a contractor).

My questions are:

1) Should this have been documented in the title search?

2) If this should have been documented in the title search, but wasn't, what recourse, if any, do I have?

3) Should I expect the title insurance to reimburse me for this?

4) If so, how do I best go about getting money out of them?

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