Problems with title searching and exams

[Peter Walther]

Recently I had a discussion with several people on the quality of todays title searches and exams.  Here's a link to a recent decision in NY regarding a case where a judgment was docketed showing an amt owed of $16k.  Unfortunately, the correct amt was closer $200k.  I don't know if the judgment was missed or ignore because of the amt was relatively low or for some other reason but after the property had changed hands several times the creditor demanded over $300k from the then owner.  Two things of note, first the atty for the property owner was Fidelity Nation Law Group which I believe is owned by Fidelity National Title.  If correct, the attys representing Fidelity's Insureds worked for Fidelity.  Second, the decision states the Plaintiff filed the original suit in November of 2016.  There is another decision in this case that was entered April 16, 2021 denying the Insured's Motion To Reargue this decision, which was denied.  That means the Insured was in litigation and unable to sell or refinance and was unsure of the priority of their interest in the property for almost five years.  In addition, if the Insured's Amt of Insurance is less than the amount demanded by the creditor there is a possibility the Insurer could just pay the lesser amt and have discharged it obligation.  There is a caveat, some policies have a provision increasing the Amt of Insurance in a case where a defense is provided but is unsuccessful.  

MYRTLE 684, LLC v. TAUBER | 189 A.D.3d 1431 (2020) | 20201223597 | Leagle.com