When Do Title Cos. Owe A Duty Of Care To Third Parties?

Law360, New York (September 10, 2015, 10:45 AM EDT) -- In Centurion Properties III LLC v. Chicago Title Insurance Co., 793 F.3d 1087 (9th Cir. 2015), the Ninth Circuit recently confronted the question of whether title companies owe a general duty of care to third parties when they record documents. Title companies often record legal instruments at the request of their clients, and in so doing, assume a fiduciary duty to the requesting party.[1] Traditionally, the duty ran exclusively to the client and was defined by the contractual relationship between the parties.[2] Courts have been reluctant to hold title companies responsible to anyone other than the contracting parties, because expanding the...

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