Registered Land in Massachusetts

[Robert Verdi]

Hello all, any advice or help is very much appreciated.  

We purchased a property that was registered land and we rehabbed it, put it on the market and are set to close Monday.  Called our attorney today and was told that there is an issue with the title.

When we purchased the property the seller's attorney put the wrong Plan No. on the deed.  The Middlesex Land Court Registry District accepted the deed.  

All of the attorney's missed this at the buying closing, which we paid for title insurance.

The new buyers attorney pointed this out and our attorney and now our attorney has filed a S Complaint with the Massachusetts Land Court.  Someone suggested getting a scriveners affidavit from the original sellers attorney and presenting it to the registry to see if they would allow it to close while we wait for the land court to go through the process which could take months.

Has anyone had any experience with this that could offer us some advice.  Also is there any recourse here on the attorney's involved and/or how does title insurance help us.

If the buyer walks we made additional renovations at their request, and we are at risk of defaulting on our loan, to which our homes are cross collateralized.  Any help or advice is greatly appreciated.  Thanks in Advance.  

[Peter Walther]

I assume when you write "you paid for title insurance" you mean you paid for and received an owner's title policy under which you're the insured.  If that's the case I suggest you immediately file a claim with the title insurer who issued you your policy and let them investigate the matter.  Assuming they have liability for the problem, and depending on the circumstances, they may be willing to insure your purchaser without exception for the matter while they work to clear the defect.  I hope this helps.