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Rood v. Commonwealth Title Ins. Co.

ELR Citation: 37 ELR 20284
Nos. No. 449 EDA 2007, (Pa. Super. Ct., 10/18/2007)

The Pennsylvania Superior Court affirmed a lower court’s grant of summary judgment in favor of appellee title insurance company finding that the undisclosed existence of an abandoned septic tank was not a defect in title within the meaning of appellant’s title insurance policy. Title insurance protects a property owner against loss by reason of defective title and encumbrances; one can hold perfect title to land that is valueless and can have marketable title to land while the land itself is unmarketable. Here, the appellant confused loss of economic value of the property due to the existence of the septic tank with title marketability.