Lender’s Title Insurance: When Should Courts Measure the Fair Market Value of Property Affected by a Title Defect?*

By:  Andy Stone

Title insurance is designed to pay for damages caused by any defects to title that the title company should have discovered but did not.  Lender’s title insurance protects lenders who lose money due to a title defect, which is distinguished from an owner’s policy that protects the property owners.  How to calculate a lender’s damages under a title insurance policy is an issue that courts have struggled to address in a consistent manner.  Generally, courts are in agreement about when a lender suffers damages, which occurs after the borrower defaults and the security for the mortgage proves inadequate. … Read More »

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CC&Rs Remain Subject to Statutory Modification

By:  Andy Stone

Future legislation may impact current CC&R obligations.  In an important decision for all communities, homeowner associations, builders, and developers, the Arizona Court of Appeals recently held that new laws may apply retroactively to modify or eliminate CC&R provisions.

In Hawk v. PC Village Ass’n, Inc., No. 1CA-CV-12-0362 (Ariz. Ct. App. September 3, 2013), the Arizona Court of Appeals held that a 2009 law, which renders unenforceable any covenant, restriction or condition prohibiting the posting of “for sale” signs, invalidated a restriction recorded before 2009.

In 2009, the Hawks purchased a lot in a master-planned community managed by PC Village Association, Inc. … Read More »

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Does an Appraiser Owe a Duty of Care to Non-Client Third Parties? It Depends.

By: Andy Stone

Under what circumstances do appraisers owe a duty of care to third parties sufficient to give rise to liability for negligent misrepresentation claims was examined (again) by the Arizona Court of Appeals in late 2012.  See Belen Loan Investors, LLC v. Bradley, 296 P.3d 984, 650 Ariz. Adv. Rep. 8 (App. 2012).  This question has been examined multiple times by the Arizona Court of Appeals over the past few years.  See id.; see also Sage v. Blagg Appraisal Co., 221 Ariz. 33, 209 P.3d 169 (App. 2009); Kuehn v. Stanley, 208 Ariz. 124, 91 P.3d 346 (App.… Read More »

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