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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.
<div> No negligence claim against title insurance by seller; see Barstad v Stewart Title, WA Supreme CT. 2001. </div>
<div> 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</div>
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<div dir="ltr">Sent from my iPhone</div>
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<blockquote type="cite">On Sep 23, 2024, at 5:31 PM, Scott R. Weaver <weaver@carneylaw.com> wrote:<br>
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<p class="MsoNormal">Any of you dealt with this situation?<o:p></o:p></p>
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<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">Closing officer / title insurance failed to identify an easement that was recorded against title.<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">Buyer learns of easement and alleges it devalues the property.<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">Buyer sues seller and the closing officer/title insurance.<o:p></o:p></li></ol>
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<p class="MsoNormal">Based on initial research, Seller has a negligence claim and indemnification claim against closing officer/title insurance.
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<p class="MsoNormal">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.<o:p></o:p></p>
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<p class="MsoNormal">Thx!<o:p></o:p></p>
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<p class="MsoNormal">Scott<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif">Scott Weaver, Shareholder</span><b><span style="font-family:"Times New Roman",serif;color:#1F4E79">
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<p class="MsoNormal"><b><span style="font-family:"Times New Roman",serif;color:#1F4E79">CARNEY BADLEY SPELLMAN, P.S.<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif">206-607-4165 Direct | 206-622-8020 Main
<o:p></o:p></span></p>
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