Question
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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