Judge determines buyer’s knowledge of title defect in breach of contract case

The purchaser of property to be used to build condominium units sued its title insurer for breach of contract after discovering that the use of the property was restricted by agreements the seller made to condominium unit purchasers before the sale. The purchaser alleged it had no knowledge of the defect and that the insurer broke the agreement by not providing title in fee simple. The U.S. District Court for the Middle District of Tennessee had to determine whether the buyer had, or should have had, knowledge of the defect when ruling on the insurer’s motion for summary judgment.