MGD purchased a policy of title insurance from First American Title Company. The policy generally insured against defects in title to property MGD owned in Tangipahoa Parish, Louisiana that might affect the marketability of the title. After MGD purchased the property, the learned that it had been under lease to the United States government during World War II for use as a bombing range. Although the lease had expired years before the purchase, MGD discovered that the remnants of bombs were still on the property. Because of the potential hazards from the bombs, officials in in Tangipahoa Parish, Louisiana refused to issue permits to develop a residential subdivision on the property. MGD filed a claim with its title insurer because the land could not be sold because the title was unmarketable and the land could not be used for its intended purpose.

Is the title insurer liable for a defect in title? Why or why not? Explain

Answer rating: 100% (QA)

The question of whether the title insurer is liable really depends on the specific terms of the titl... View the full answer