Chicago Title Insurance has filed a malpractice claim against a homebuyer's attorney, saying he acted without diligence and owes a piece of the $300,000 the company paid to save a policyholder's home. The suit alleges the attorney failed to investigate a previous sale in the chain of ownership to ensure there was no potential federal estate tax lien. Real estate lawyers say this is the first suit they know of that alleges failure to research previous sales -- a job usually thought to be the role of title professionals.
Insurer Blames N.J. Lawyer for Blot on Title
New Jersey Law Journal
June 16, 2009