Question

The owner claims the title insurance company cannot enforce the claim, held by the buyer and assigned to the title company by subrogation, when the buyer and the title insurance company were both aware of the easement before closing.

Is the title insurance company entitled to be subrogated to the rights of the buyer under the grant deed and recover the amount it paid for the buyer's lost value caused by the easement (2)?

Answer 1

If the buyer and title insurance company were both aware of the easement before closing, the title insurance company may not be entitled to recover the amount it paid for the buyer's lost value caused by the easement.

Step-by-step explanation:

When a buyer purchases a property, they typically obtain title insurance to protect against any defects in the title. If the buyer later discovers an easement on the property that was not disclosed before closing, they may file a claim with their title insurance company.

In this case, the buyer assigned their claim to the title insurance company by subrogation, which means that the title insurance company steps into the buyer's shoes and can enforce the claim on behalf of the buyer.

However, if both the buyer and the title insurance company were aware of the easement before closing and still proceeded with the sale, the title insurance company may not be entitled to recover the amount it paid for the buyer's lost value caused by the easement. This is because both parties had knowledge of the easement and willingly entered into the transaction despite its existence.