Am I entitled to a refund or credit for incomplete title search services? – North Carolina

Short Answer

Under North Carolina law, entitlement to a refund or credit for an incomplete title search usually depends on the service contract and whether the company failed to provide what it promised. If the agreement clearly covered both parcels and the company delivered only one, that can support a claim for partial refund, completion at no extra charge, or other contract remedies. If the agreement was priced and structured on a per-parcel basis, the company may be allowed to charge more for the second parcel but must still act reasonably and within any agreed timelines.

Understanding the Problem

The question here is whether a North Carolina real estate client who ordered a title search can seek a refund or credit when the title report comes back incomplete. The concern focuses on a situation where the property actually consists of more than one parcel, but the search company only searched and reported on one parcel. The company has acknowledged the issue but has not promptly finished the work or clearly quoted any additional cost or timeline. The core issue is whether the service provider breached the agreement for the title search, and what remedies North Carolina law generally allows when a service is only partially performed or delayed.

Apply the Law

North Carolina treats a title search as a service contract, often governed by basic contract and consumer protection principles. The key questions are: what did the provider agree to do, what was actually delivered, and did the provider act reasonably and in good faith when a second parcel was identified? If the scope included both parcels for an agreed price and time, failure to search the second parcel may be a breach. If the scope and pricing were based on a single parcel and the second parcel significantly increases the work, additional reasonable charges may be permissible, but the provider still must communicate clearly and not mislead the client.

Key Requirements

Clear agreement on scope: There must be some understanding (written or confirmed in communications) about whether the title search covered one parcel or all parcels that make up the property.
Performance of the agreed work: The title search company must perform the work as agreed, within a reasonable time and with reasonable care in identifying all relevant records.
Remedy for nonperformance or partial performance: If the company materially fails to perform, North Carolina contract law can allow cancellation, refund or partial refund, or a requirement to complete the work as promised.

What the Statutes Say

North Carolina Gen. Stat. Chapter 75, Article 1 (Unfair and Deceptive Trade Practices) – Prohibits unfair or deceptive acts in commerce, including misleading representations about services.

Analysis

Apply the Rule to the Facts: In the described situation, the order appears to have been for a title search on a specific property, which includes two parcels. If the confirmation or invoice did not limit the work to a single parcel, the client can argue the scope reasonably included the entire property, so delivering a report on only one parcel is incomplete performance. The company’s delay in responding and failure to give a clear quote or timeline for the second parcel may further support a claim that it has not acted reasonably in performing the contract.

Process & Timing

Who files: The client. Where: Typically, start with a written complaint to the title search company, and if unresolved, a claim in North Carolina small claims court or district court depending on the dollar amount. What: A written demand letter outlining the incomplete services and requested refund or completion, followed by a civil complaint if needed. When: As soon as it becomes clear the company will not complete the work or respond reasonably; contract claims in North Carolina usually have several years’ limitation, but acting promptly is important.
If informal resolution fails, the client can file a small claims action in the appropriate county for smaller dollar disputes. Service of the complaint and hearing dates are typically set within a few weeks to a couple of months, depending on the county’s docket.
After a hearing, the court may award a money judgment, which can include a refund or partial refund, or deny the claim. In some cases involving unfair or deceptive conduct, a separate action in district or superior court may seek broader remedies.

Exceptions & Pitfalls

If the service order or invoice clearly states that pricing is per parcel and only one parcel was ordered or paid for, a claim for a refund on the completed search may be weak, though delays in quoting the second parcel may still be an issue.
Failing to keep copies of the original order, email confirmations, invoices, and the incomplete report can make it harder to prove what was promised.
Waiting until after a scheduled closing to raise the issue can complicate remedies and may limit practical options, even if legal claims still exist.

Conclusion

In North Carolina, entitlement to a refund or credit for an incomplete title search depends mostly on what the service agreement covered and whether the provider reasonably performed that agreement. When a title search is ordered on a property that includes multiple parcels and the provider only searches one without clear prior limitation, that can amount to incomplete performance supporting a request for refund, price adjustment, or completion of the work. The most important next step is to send a clear written demand to the company, referencing the original request and specifying the relief sought, and then consider a small claims or district court action if the dispute is not resolved promptly.

Talk to a Real Estate Attorney

If you’re dealing with an incomplete title search or a dispute over title search fees in North Carolina real estate, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.