United Community Bank v. Prairie State Bank and Trust

A purchaser and seller hammered out an unrecorded purchase agreement, unaware of a judgment lien placed on the property. The title company who insured the transaction didn’t identify the lien, but paid off the most senior lien, a construction loan. When the issue of who had priority came before a trial court in Illinois, the trial court sided with the judgment lien holder, saying the title company should be the real party in interest because it was providing the defense because of its mistake in not identifying the judgment lien. The purchaser appealed the decision to the Fourth District Appellate Court of Illinois.