Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Lawyers Title Insurance Company hired lawyer David Groff as Lawyers Titles settlement agent and attorney for the lender in a real estate transaction involving property

Lawyers Title Insurance Company hired lawyer David Groff as Lawyers Titles settlement agent and attorney for the lender in a real estate transaction involving property in Londonderry, New Hampshire. Prior to closing the real estate sale, Groff retained a title abstractor to conduct a title search and prepare an abstractors report. Because the title abstractor negligently failed to find and disclose a construction mortgage on the property, Groff issued title insurance policies to both the lender and the buyers without excepting the mortgage. As a result, the construction mortgage was not discharged prior to the sale. The mortgagee asserted its rights and threatened to foreclose on the property until Lawyers Title paid the mortgagee $152,000. On what grounds did Lawyers Title seek to recover a portion of its loss from Groff?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions