Clarifying The Limits Of Title Insurance Claims

By Alfred Clark III (September 7, 2017, 4:45 PM EDT) -- A recent California court of appeal has clarified the limits for claims on lender's title insurance policies after a foreclosure sale involving the insured deed of trust. In Hovannisian v. First American Title Insurance Company, 2017 DJDAR 7809 (F072789, Aug. 11, 2017), the Court of Appeal affirmed the grant of a title company's summary judgment motion after it had refused to indemnify or defend its insured based upon a title defect discovered by the purchaser of the property following a nonjudicial foreclosure sale.

Wells Fargo Bank initiated the foreclosure of a deed of trust which stated on its face that it...

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