Claims Corner: The Value of Title Insurance for the Cash Purchaser

November 19, 2015

An owner’s policy of title insurance was issued in the amount of $1.2 million, concurrent with the insured’s purchase of vacant land in an extremely high-value area. The transaction was an REO sale of property, recently foreclosed upon by a local bank, and the insured received a quitclaim deed in exchange for the large purchase price in cash. Soon after closing, the insured began the process of building her dream home on the lot. All was well—right up until she got sued by the former owners of the property who had been foreclosed.

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