Firstland Village Associates v. Lawyer's Title Ins. Co.

Decision Date23 November 1981
Docket NumberNo. 21597,21597
Citation284 S.E.2d 582,277 S.C. 184
CourtSouth Carolina Supreme Court
PartiesFIRSTLAND VILLAGE ASSOCIATES, Appellant, v. LAWYER'S TITLE INSURANCE COMPANY, Respondent.

Robert E. Stepp, of McNair, Glenn, Konduros, Corley, Singletary, Porter & Dibble, Columbia, for appellant.

Ralph C. Robinson, Jr., of Robinson & Britt, and Frank E. Robinson, II, of Lewis, Lewis & Robinson, Columbia, for respondent.

PER CURIAM:

This appeal concerns the liability of respondent (title company) under an owner's policy of title insurance issued to appellant (developer). The trial judge granted summary judgment to the title company. We affirm for the reasons stated hereafter.

The material facts are not in dispute. The developer bought part of a tract of land designated "Future Development" on a plat of Dorchester Estates Subdivision in Dorchester County. Prior to the purchase, the existing restrictive covenants were amended (the first amendment) so as to permit construction on the developer's tract of a planned unit development. The title company issued an owner's policy, which took exception to the original restrictions and first amendment. After closing of the transaction and issuance of the title policy, a group of lot owners filed a document (the second amendment), which purported to "clarify" the first amendment. The effect of the second amendment, if valid, would be to restrict further the developer's tract. As a result, units under construction by the developer and other planned units may be in violation of the restrictive covenants.

In this action, the developer asserts the title company breached its covenants under the title policy by its refusal to issue subsequent policies and endorsements without exception for the second amendment and its refusal to join in the prosecution of an action against the lot owners to invalidate the second amendment.

Generally, title insurance operates to protect a purchaser or mortgagee against defects in or encumbrances on title which are in existence at the time the insured takes title. National Mortgage Corporation v. American Title Insurance Company, 299 N.C. 369, 261 S.E.2d 844 (1980). Title insurance is unique in that it is retrospective, not prospective. Van Arsdale v. Metropolitan Title Guaranty Co., 103 Misc.2d 104, 425 N.Y.S.2d 482 (Dist.Ct.1980).

The risks of title insurance end where the risks of other kinds begin. Title insurance, instead of protecting the insured against matters that may arise during a stated period after the issuance of the policy, is designed to save him harmless from any loss through defects, liens, or encumbrances that may affect or burden his title when he takes it.

National Mortgage Corporation, 299 N.C. at 375, 261 S.E.2d at 847-8, quoting from Trenton Potteries Co. v. Title Guarantee & Trust Co., 176 N.Y. 65, 68 N.E. 132 (1903). See Safeco Title Insurance Company v. Moskopoulos, 116 Cal.App.3d 658, 172 Cal.Rptr. 248 (Ct.App.1981); 9 Appleman, Insurance Law and Practice, Section 5209 at 61 (1981);...

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  • Cherry Hills Farm Court, LLC v. First Am. Title Ins. Co.
    • United States
    • United States District Courts. 10th Circuit. United States District Court of Colorado
    • December 6, 2019
    ...which are in existence at the time the insured takes title," rather than against future risks. Firstland Village Associates v. Lawyer's Title Ins. Co. , 277 S.C. 184, 284 S.E.2nd 582, 583 (1981). Purchasers of title insurance generally make a single premium payment in return for indefinite ......
  • Fid. Nat'l Title Ins. Co. v. Captiva Lake Invs., LLC
    • United States
    • United States District Courts. 8th Circuit. United States District Court (Eastern District of Missouri)
    • April 22, 2013
    ...encumbrances on title which are in existence at the time the insured takes title. Firstland Village Associates v. Lawyer's Title Ins. Co., 277 S.C. 184, 284 S.E.2d 582, 583 (1981). Thus, title insurance differs from most other types of insurance because it seeks to eliminate risk [941 F.Sup......
  • Lyons v. Fid. Nat'l Title Ins. Co.
    • United States
    • Court of Appeals of South Carolina
    • December 2, 2015
    ...in or encumbrances on title which are in existence at the time the insured takes title." Firstland Vill. Assocs. v. Lawyer's Title Ins. Co., 277 S.C. 184, 186, 284 S.E.2d 582, 583 (1981).In this case, Exclusion 1 states the following:In addition to the Exceptions in Schedule B, you are not ......
  • Fid. Nat'l Title Ins. Co. v. Captiva Lake Invs., LLC
    • United States
    • United States District Courts. 8th Circuit. United States District Court (Eastern District of Missouri)
    • April 22, 2013
    ...defects in or encumbrances on title which are in existence at the time the insured takes title. Firstland Village Associates v. Lawyer's Title Ins. Co., 284 S.E.2d 582, 583 (S.C. 1981). Thus, title insurance differs from most other types of insurance because it seeks to eliminate risk of lo......
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