Thursday, August 21, 2008

this may not seem like alot of money but what this tells me

is how this attorney thinks............and I think his title underwriter should pay attention. Pay attention to the facts. The attorney received evidence that the letter on which he was relying was incorrect and he chose to ignore it.

Read this e-mail I've just shot over to my underwriter:

Closing a purchase transaction today at 4pm - issuing both loan and owner policies premium based on $160,000.
At issue is inheritance tax owing for the estate of redacted who died testate in 1992. Mr. redacted had a 1/3 interest in our property which is situate in Somerset County. His estate was filed in Allegheny County at No. redacted of 1992.
On October 21, 1994 the attorney for the estate, redacted of Reed, Smith, Shaw & McClay delivered a letter to redacted, then counsel at Chicago Title, which said:
This firm has acted as counsel to the Estate of redacted. This letter will confirm to you that all taxes, including Pennsylvania inheritance tax, owed by the estate have been paid in respect of the interests owned by the decedent and his estate in the properties known as redacted.
The letter was copied to redacted, attorney and agent for Chicago. On the basis of this letter, Mr. redacted was granted authority by redacted to issue insurance without exception for the inheritance tax.
On October 24, 1994 Atty. redacted filed estate information in Somerset at No. redacted-1994 including an inheritance tax return and evidence of payment of tax. My abstractor and I have examined the return and the 1/3 interest was not reported. There is no real estate or joint property reported at all, so we have raised the inheritance tax as an exception.
Mr. redacted insists that the letter from Reed Smith is sufficient evidence of payment and absolute authority to insure. I disagree, especially since the facts show that the letter is incorrect. Mr. redacted has no further evidence that the tax was paid.
At our request we received a copy of an owner policy which was issued to a prior owner. Our current seller does not have title insurance. May we accept indemnification or do you think Chicago will issue indemnification based upon a prior owner policy?
I also agreed to take indemnification directly from Mr. redacted but he refuses to issue it.
I have a call into Reed Smith to see if they have any further information which would help or perhaps they will issue a letter of guarantee.
Mr. redacted is taking the position that his client will not close with an escrow of $1500 - which I think is reasonable while they pursue an amended return. Instead he wants to take the transaction and insure it himself through Chicago.
I hate this crap. ;) Anyway, do you want me to insure over it?

Diane Cipa
General Manager
204 West Main Street, Ligonier, PA 15658
888-680-5177 X104
724-238-7830 FAX

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