“Seller, as a condition subsequent to closing, shall remove and sever the subject properties from the condominium regime.”The agreement was to sever post-settlement so I assume you'll find the title policy insures as part of the condo and subject to the declaration etc. and as @Peter Walther suggested, the title claim would be denied on that basis.Without seeing the original agreement nobody can give a reliable answer but based upon the info provided that would seem to leave as defendants (1) the seller and (2) your real estate agent or attorney (if any)... the latter for not researching this and/or leaving severance open as a matter that could actually be handled post-settlement.Regarding who you sue first... the answer is everybody, or you may lose the right to sue someone you should have later.

It's easier if you memorize a sentence and don't explain or defend.  

The issue defending this action in court.

The moral of the story is even if you had all your paperwork in a row and you did everything to the legal standard if they get an attorney and sue you and you have to hire an attorney to defend yourself you will end up paying a large amount and legal costs even if you win.

But if you have observed corporate formalities and kept the LLC separate from your personal affairs, they will not be able to obtain a judgment against you personally, even if they name you personally as a defendant.

The defendant, our tenant, did show up for court and was called up to the bench next to our attorney.

So if he would have paid $300 that would have been acceptable which makes no senseI always say deduct what you are willing to defend in court if need be. 

One way or another you would probably end up on the wrong end of the lawsuit and have to at minimum hire an attorney to defend you and/or pass the liability over to the tenant's insurance.Also keep in mind, the tenant's insurance is going to do anything they can to not have to pay.  

It's worth every penny to either have your atty review your lease or provide you with one that they will defend in court. 

But I vigorously defend service members.