A title company's purpose is to insure good title to the property. Good title has to do with ownership, liens and property restrictions mostly. A title company isn't really the right place to go to ask questions about how to develop a piece of land. Negligence requires breach of a legal duty. If the title policy states the property is suitable for building residential property or had incorrect information regarding plats, there MAY be a claim.
My first instinct would be to look at the real estate agent and the seller. Did they make any promises regarding the property being suitable for building? Do the contract or disclosures claim the property was already platted? Have a real estate attorney look at all of the paperwork from the seller, real estate agent and title company.
The information contained in this post is for informational purposes only and should not be construed as legal advice. Use of this information does not create an attorney-client relationship.