: While title insurance usually covers ownership disputes, certain "enhanced" policies may cover specific physical defects or permit issues that weren't discovered during the title search.
While the "buyer beware" ( caveat emptor ) philosophy still exists in some forms, modern consumer protection laws have shifted the burden of honesty onto the seller. Through a combination of legal action and insurance claims, buyers can often recover the costs of turning a "lemon" back into a home.
If you find yourself in this situation, acting quickly and methodically is essential:
Beyond litigation, there are practical steps to mitigate the financial blow of a lemon house.