Title Insurance

Nourachi v. First American Title Insurance Company, ___ So. 3d  ___, 35 Fla. L. Weekly D1762 (Fla. 5th DCA 8/6/10)

The insured purchased land from the county at a tax sale.  After the sale, the insured discovered that the United States, rather than the county, owned the land.  The insured applied for title insurance.  The insured failed to disclose the title defect, and the insurance company negligently failed to discover it.  When the insured made a claim, the insurance company successfully sought to rescind the policy.  If  “a party does not rely on a title insurance company to advise it of encumbrances prior to acquiring title to property, it may not recover on a material title defect of which it had actual knowledge and which it failed to disclose to the insurer at the time it applied for the title policy.”