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Discuss your specific situation with an attorney – there may even be one at the title company, state dependent, that can give you some guidance on this issue.
Whether or not the broker, or anyone, owes you money would probably depend upon whether or not you could show that they knew about the lien, or deliberately mislead you in any way. They may have known, they may not have. The seller, in theory, should have known. If they did not know, then the lien perhaps predates them and they may have title insurance to cover it. If they knew but didn’t tell anyone, well, that is just rotten. You may be able to explore some sort of breach of contract, but it may end up costing you more than you would be able to recover. Can the seller just pay it? If they haven’t and can’t pay the lien, and they want to sell … well, what have they to give? Approach the situation both from an ethical level and a practical/realistic level, and move forward accordingly.
Your purchase contract will have some very specific language as to the right and responsibility to deliver clear title. Read it carefully, and seek legal guidance. If you are set on this house, explore all options as to the discharge of the lien … your broker and title agent can be helpful here, as well.
Sorry, and good luck. Not enviable circumstances, but not uncommon, either. There are experts in your local market that will be able to help you assess your options and realistic potential outcomes.
I applied for a FHA loan to buy a house that was on the open market. The day before the date of the deadline on an extentsion, the title company found a lien against the house perventing the house from being sold to anyone until the money was paid off. I have invested a lot of time, and money. Is the broker responsible for reinburstment of my money?