[WSBARP] Seller's Claim Against Closing Officer

[Gregory L. Ursich]

Scott: First, when was easement found out by buyer? Was easement listed as a Schedule B special exception in the title insurance policy? If so, no title insurance coverage in general. But, buyer may have a breach of statutory warranty deed claim against seller, if easement not disclosed on face of the deed.
   No negligence claim against title insurance by seller; see Barstad v Stewart Title,  WA Supreme CT. 2001.
   If easement not disclosed in title insurance policy and recorded prior to closing, buyer has a title insurance claim. Title insurance should likely cover. Title insurance then has a subrogation claim against seller for breach of the statutory warranty deed., if easement not listed on deed. This is really not an escrow negligence situation unless closing officer had direct knowledge of new easement and didn’t inform buyer, or some other weird fact pattern. -Greg Ursich, Inslee Best
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On Sep 23, 2024, at 5:31 PM, Scott R. Weaver <weaver at carneylaw.com> wrote:


Any of you dealt with this situation?


  1.  Closing officer / title insurance failed to identify an easement that was recorded against title.
  2.  Buyer learns of easement and alleges it devalues the property.
  3.  Buyer sues seller and the closing officer/title insurance.

Based on initial research, Seller has a negligence claim and indemnification claim against closing officer/title insurance.

If you have had such a case, I would love to look over the pleadings and briefing in the court file if you don’t mind sharing the cause number, etc.

Thx!

Scott


Scott Weaver, Shareholder
CARNEY BADLEY SPELLMAN, P.S.
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