Title Insurance Does Not Cover Dedication Instruments
May 3, 2014The McGonagles bought property in Granbury, Texas subject to a dedication instrument involving the city’s historic district. At closing, the McGonagles also purchased a title insurance policy. The McGonagles later tried to resell the property, but couldn’t because of the dedication instrument, so they sued the title insurance company, who had denied coverage. The Court agreed with the title insurers, holding, among other things, that a dedication does not fall with the scope of title insurance coverage because it is not a tax, assessment or lien on real property.
