Title company is asking me to pay for a title search after the deal failed due to the seller
I was planning to buy a small piece of land located in Virginia, and reached out to a title company by email to handle the transfer/title work. I did not sign any agreement or paperwork, and no fee was discussed up front.
The title company then performed a title search and found out that the seller does not actually have a recorded deed/title to the property, even though he has apparently been paying property taxes on it for years.
Because of that, we could not proceed with the purchase.
Now the title company is asking me to pay $125 for the title search. The title company says I would need to pay the entire amount due, and can seek reimbursement from the seller outside of them.
My questions are:
- Am I generally obligated to pay this fee even though I never signed anything and the fee was not disclosed beforehand?
- Since the issue was with the seller’s ownership/title, would it be reasonable to ask the seller to split or cover the fee?
- What is typically done in situations like this?
Just trying to understand what is considered normal/fair here.