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On September 12, 2020 Bart Buyer and Sam Seller entered into a written contract; Mr. Buyer agreed to purchase Mr. Seller's office building (located in

On September 12, 2020 Bart Buyer and Sam Seller entered into a written contract; Mr.

Buyer agreed to purchase Mr. Seller's office building (located in Indian River County) for

$875,000. The closing took place on November 2, 2020. Prior to closing, a title

examination was conducted; there were no apparent problems with the title and a title

insurance commitment was issued prior to closing. On November 5, a title insurance policy

was issued to Mr. Buyer. On November 8, 2020 the State of Florida approved a highway

project that would affect Mr. Seller's office building. Most likely the building would be

purchased by the state (through eminent domain) in order to complete the highway.

In addition to the eminent domain issue, Mr. Buyer has discovered a

construction lien (typically used when construction work was not compensated) on the

property. The lien was properly recorded in Indian River County, but apparently the title

examiner did not discover the lien (most likely an oversight). If Mr. Buyer makes a claim

under his title insurance policy for the construction lien, will he be successful? Explain

your answer.

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