Court Report

The Circuit Court of Cook County, Ill. County Department, Chancery Division, recently ruled in the Illinois Land Title Association’s (LTA) suit against the Cook County Recorder. The LTA had sued the recorder for refusing to record affidavits of heirship and affidavits of survivorship without also providing a copy of a probate court order. Read on for more details.

In a case involving wire fraud in a real estate transaction, a couple buying a retirement home in Arizona sued the bank which released funds in the fraudulent transaction, alleging that the bank aided and abetted the fraud by releasing the funds when it knew of potential fraud. The bank moved to dismiss, arguing that the wire transfer had been completed before the bank was put on notice. Read on for more.

A pro se defendant who lost his trial court lawsuit against servicers appealed to the Court of Appeal, Second District, Division 1, in California, alleging the lower court improperly dismissed his case concerning notice of the transfer of his loans. The appellate court upheld the lower court’s ruling, saying the borrower confused transferring responsibility for servicing the loan with assigning the beneficial interest in the loan.

After a state court found in favor of neighbors claiming a servitude to use a gravel road across their property, a couple filed suit against their title insurer for breach of contract and negligence in failing to discover the decades old servitude and defend their interests. Read on for more details.

The beneficiary of a trust that sold land to another trust he was beneficiary of was granted a mortgage to the property that was sold. Later on, he discovered that the mortgage was not recorded, leaving him and the trust that sold the property as unsecured creditors. After the trust that bought the property filed for bankruptcy and attempted to avoid the mortgage, the beneficiary sued the title company that handled the sale and the trustee of the trust. That suit was dismissed, but the beneficiary filed suit again two years later. Read on for more details.

The buyer of previously foreclosed-upon property sued the title company who handled the transaction, alleging that although the title company confirmed the seller’s title and the absence of post-foreclosure appellate or other legal challenges to the seller’s title, the title company negligently missed a post-judgment, duly-docketed motion to vacate the foreclosure judgment and challenge the seller’s title. Read on for more details.

A couple sued their title insurer, claiming that the underwriter failed to disclose the true nature of an easement over their property in Santa Rosa, Calif. A trial court granted a summary judgment motion in favor of the title insurer, holding that the preliminary report and title policy excluded coverage for any loss resulting from the easement. The couple appealed. Read on for more details.

When a lender made a loan to a couple buying property in New Brunswick, N.J., it provided the title agent with supplemental instructions to ensure its mortgage had first priority. The property went into default. When the lender went to the purported title insurer, the title insurer denied its claim, informing the lender that the title agent had not been an authorized agent at the time the loan was made and the policy was issued. Read on for more details.

The Superior Court of New Jersey Appellate Division recently determined whether a county register or clerk has the authority to charge a convenience fee for the electronic recording of documents regarding real property. The case was brought by the New Jersey Land Title Association against the county recorder of Essex County. Read on for more details.

A group of borrowers in New Jersey filed a class action suit against their lender and settlement service provider, arguing that they are the victim of a kickback scheme by which the settlement provider provided leads in return for referrals of business. Read on for more details.