[WSBARP] Claim Against Title Insurer/Agent?

[Kary Krismer]

I'm not sure title (as opposed to escrow) even sees the P&S agreement. 
Escrow may just send title the names of the buyers so that the 
commitment can be updated.  But you raise an interesting point.  I had a 
transaction where the title company legal and P&S legal didn't match, 
and it was the escrow that notified me of the possible issue.  (It 
turned out it the P&S was correct.)  The title report itself didn't 
mention the possible error, which would suggest they don't see the P&S 
agreement. So my question would be is there a duty for an escrow to 
check the legal and notify the parties of any discrepancies?

Kary L. Krismer
206 723-2148

On 7/28/2021 10:42 AM, Samuel M. Meyler wrote:
>
> 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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