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Moore v. Title Insurance Co. of Minnesota

Arizona Court of Appeals
148 Ariz. 408 (1985)


Facts

Michael Moore (plaintiff) entered into an agreement to purchase property at the offices of Title Insurance Company of Minnesota (Minnesota) (defendant). The agreement disclosed the existence of three liens on the property and provided that if the property were found to be subject to any additional liens, Moore could terminate the agreement. Moore could also cancel the agreement if he did not have financing prior to closing. Before signing the agreement, Moore learned from an escrow officer that Minnesota had made a preliminary title report that contained the three liens disclosed in the agreement. Moore closed the sale despite not having any financing. Before closing, Minnesota prepared an amended title report that again showed only the three previously disclosed liens. The following year, Moore was told by a bank officer that there were five additional liens on the property. Moore later lost the property due to his inability to pay off these additional liens. Moore brought suit against Minnesota, alleging that Minnesota was negligent in searching the title and that this negligence prevented him from exercising his option to terminate the agreement. The trial court found for Minnesota, and Moore appealed.

Rule of Law

Issue

Holding and Reasoning (Howard, J.)

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