Legal Question in Insurance Law in Minnesota

Chicago Title Blew Me Off: Should They Cover Me?

I purchased a condo last year as a quick rehab and sell investment. I paid cash for the property and was issued a ALTA Owners Policy and ALTA Loan Policy. I have reason to believe there were multiple parties involved that were aware this property would have title issues including the attorney that issued the title policy as well as a chain of sellers. After purchasing the property I had it rehabbed and ready for market within about 2 weeks. A week after that I had a full price offer set to close in 30 days. Two days before we were supposed to close I get a call from the buyers title company asking about a Lis Pendens on the property? After a lot of research I find that on the day I purchased the property a Lis Pendens was filed as the result of two opposing investors who had been fighting it out for controll of the property during the foreclosure redemption. One of them was the investor who sold me the property. Long story short the buyer who I was supposed to sell the condo to waited around for about 2 months before finally giving up on the title issue being settled in a timely manner. I was forced to rent out the property to help cover my expenses. Chicago Title eventually stepped in and started paying my legal fees; the issues


Asked on 10/24/07, 12:02 pm

1 Answer from Attorneys
J D Haas

Re: Chicago Title Blew Me Off: Should They Cover Me?

Your insurance question is a specific one regarding title insurance. Unfortunately, I cannot answer your question as my insurance experience is in liability insurance in its different forms. My suggestion is to post this on the real estate law board or contact a real estate or contract lawyer. I am sorry that I could not answer your questions.

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Answered on 10/24/07, 12:44 pm


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