Escrow & Title
A 'title defect' discovered after closing in Pennsylvania that was known to the seller but not disclosed may give the buyer grounds for:
AOnly an insurance claim against their title insurer
BA claim against the seller for fraud or misrepresentation, in addition to a title insurance claim✓ Correct
CA complaint with PREC only
DNo recourse after closing
Explanation
If a seller knowingly concealed a title defect, the buyer has potential claims for fraud and misrepresentation against the seller, independent of any title insurance claim. Title insurance covers unknown defects that title searches don't reveal — deliberate concealment by the seller may not be covered as such by the title insurer.
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