LEM 2Q, LLC v. Guaranaty National Title Co.

MCINERNEY, J.,

Six1 motions for summary judgment require this court to determine whether escrow agents in a loan/investment transaction involving real estate, had a duty to disclose to lenders/ investors the existence of prior unrecorded encumbrances *279upon the realty. For the reasons below, this court finds that the escrow agents had no duty to disclose the existence of prior unrecorded encumbrances upon the realty.

Background

Plaintiffs are successors-in-interest of an entity that invested $3 million in real property under a preferred equity scheme. Defendant Fidelity National Title Insurance…