A young couple with a newborn baby fell in love with a starter home that, as originally built, had two bedrooms and one bath. The seller had converted a garage into an in-law studio which the young couple thought would be ideal for a live-in nanny for their baby. The couple had no reason to question the seller about the construction of the studio as they assumed the seller, a contractor, had obtained the proper permits. They purchased an ALTA Homeowners Policy to protect their title.
Almost immediately after they moved in, the young couple received a notice of abatement from the local planning department, citing the in-law studio was built without a permit and demanding its demolition, or conversion to a garage. The couple was able to rely on their title company, North American, who hired legal counsel immediately to obtain a variance on the couples behalf from the planning department. The couple was allowed to keep the studio, as is, for their nanny, and enjoy their dream home with the peace of mind backed by their title company.