For this hypothetical, don’t worry about whether you fully understand the legal niceties here – just give me a couple of paragraphs of ideas about how to solve the problem.
You represent the buyer of an apartment complex. You find out there is an old mechanics lien on the property that doesn’t appear to have been resolved; however, it is your opinion that all relevant statutes of limitations have expired such that there is no potential enforcement mechanism available to the lienholder. [A mechanics lien allows a contractor who has done work on a piece of real estate to place a lien on the real estate in order to insure payment – this is allowed in most states by statute]. You try to contact the lienholder, a plumbing company, but no one seems to have any records regarding the mechanics lien, good or bad. You request the title insurance company write over the lien in light of the statutes of limitations. [Title insurance companies operate to guarantee that when someone buys a piece of real estate the title they receive from the seller is a good title – free and clear from any problems]. The title insurance company is skiddish. The mortgage company won’t loan the money to your buyer without the title insurance. You decide to talk to the seller about their thoughts. The seller indicates their title search when they bought the property failed to disclose the lien – they were able to get a mortgage and procure title insurance without a problem. The amount in question is about $5,000 – the deal in question is for over $12,000,000. Ideas about how to get this resolved. With whom do you negotiate and for what? Or do you negotiate at all?