Title insurance: Care when conveying to your LLC

[Peter Walther]

For those of you who, like me, enjoy reading court decisions related to title insurance, here's a link to a recent one in California that answers the question of why care should be taken when conveying title to your own LLC.


PAK v. FIRST AMERICAN TIT | No. B297647. | By BAKER | 20201124025 | Leagle.com


You should keep in mind this situation should not arise now since the definition of Insured in the current version of the ALTA Owner's Policy includes entities created by the original insureds and which they are the sole members/owners.  Of course if A is the original insured and he conveys the property to an LLC in which he and his brother are members, the LLC probably does not meet the definition of Insured under the policy.