Based upon my experiences having bought and sold numerous homes in the past forty years title insurance comes in two types of policies. The first one generally protects the bank/mortgage company from defects in the title. The second policy which can be purchased from the closing attorney protects the buyer. I am unaware of a title insurance policy that protects the seller(s).
If you were the seller in this transaction and there is nothing is the sales contract/agreement that says someone else is responsible for the back taxes then you would be responsible to pay the pro rata share of the taxes up to the day the property was transferred. If you go ahead and pay now you could save additional potential costs which could be assessed for interest and late fees. Rest assured if this matter falls back in the hands of the title insurance company and they end up paying it will not be long before you are contacted to reimburse them for this expense including applicable attorney fees. As many before me have already said, do the right thing and quit trying to get away with not paying what you rightfully owe.
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