Washington State Case Reinforces Importance Of Clear Title Policy Exceptions

Introduction

In a recent case decided by the Court of Appeals of Washington State, the Court considered whether a title insurance company could deny coverage to a policyholder based on an exception for loss by reason of "matters disclosed by a record of survey." Here, "the matter disclosed by the survey" was a recorded boundary line adjustment that consolidated the purchased property's two lots into one. High Definition Homes, LLC v. Stewart Title Guar. Co., No. 58677-1-II, 2024 Wash. App. LEXIS 1601 (Ct. App. Aug. 6, 2024). The Court determined that the policyholder was on notice of the boundary line adjustment since it was specifically identified in the title policy and was publicly recorded; since the document was akin to a record of survey, losses resulting from such a record were expressly excluded under the policy.