[WSBARP] Claim Against Title Insurer/Agent?

[Gregory L. Ursich]

Samuel: Actually probably more of an Escrow issue.  But, if a preliminary commitment was issued showing only 1 parking stall, the standard PSA under NWMLS has a title contingency and review period.  Did the buyer deal with that?

[cid:image003.jpg at 01D7839F.98669F60]
Gregory L. Ursich
Shareholder
Skyline Tower, Suite 1500 | 10900 NE 4th Street | Bellevue, WA 98004
P: 425.450.4258 | F: 425.635.7720
vCard<http://www.insleebest.com/uploads/vcards/gursich.vcf> | website<http://www.insleebest.com/> | gursich at insleebest.com<mailto:gursich at insleebest.com>

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Samuel M. Meyler
Sent: Wednesday, July 28, 2021 10:43 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Claim Against Title Insurer/Agent?

Listmates,

Is there any possible claim against the title insurer in the following scenario?  Condo is listed and marketed on the MLS as having two specific, numbered parking spaces.  The Purchase and Sale Agreement states that the condo is assigned the two specific parking spaces.  Title company receives these materials for their file as usual.  An Amendment to the Declaration indicates that the condo is only assigned one or the two parking spaces.  The title policy that is issued is a standard Homeowner's Policy and excludes coverage for provisions in the Amendment.

On the day after closing, title agent acknowledges in writing that they were aware that PSA and the listing indicated that there were two parking spots even though they issued a policy that contradicts those details.  Title insurer denies coverage based on the exclusions.

Did the title agent/insurer have a duty to bring the discrepancy to the Buyer's attention rather than simply issuing a policy that contradicted the transaction documents?


Sam


Samuel M. Meyler
Meyler Legal, PLLC
1700 Westlake Ave. N., Ste. 200
Seattle, Washington 98109
Tel:  206.876.7770
Fax:  206.876.7771
Email:  samuel at meylerlegal.com<mailto:samuel at meylerlegal.com>

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