Articles Posted in Real Estate Law

by
In 2006, DLI Properties, LLC (DLI), hired Allen Tate, a real estate brokerage firm, and Faile, Allen Tate's licensee, to serve as its agents in connection with the sale of certain real property in Lancaster, South Carolina. Petitioners, using Sharon Davis of Davis Integrity Realty, Inc. as their broker, offered to purchase the property. Petitioners sued Respondents alleging fraud, negligent misrepresentation, and violations of the South Carolina Unfair Trade Practices Act (the SCUTPA) based on DLI's acceptance of an offer on the property and Faile's representation that DLI would accept Petitioner's offer. Petitioners claimed Respondents made misrepresentations concerning the validity and effectiveness of their agreement to purchase the property. Petitioners asserted Respondents had a duty of care to communicate truthful information to Petitioners, and breached that duty by failing to disclose the ultimately successful offer, and the fact that DLI had not signed Petitioners' offer. Petitioners further alleged Respondents demonstrated a pattern of behavior sufficient to establish a SCUTPA violation. Petitioners appealed the circuit court's decision that granted summary judgment in favor of the Respondents. After careful consideration of the circumstances of the deal, the Supreme Court affirmed, noting that the appellate court erred only by not addressing the merits of Petitioners' appeal. On the merits, the Court affirmed the circuit court as modified. View "Woodson v. DLI Properties" on Justia Law

by
In December 2004, Atlantic Carolina Retail, LLC loaned $3,075,000 to Monarch Development, LLC. Atlantic collateralized the loan by taking a mortgage on three properties. Atlantic purchased a title insurance policy from First American Title Insurance Company to insure these mortgage interests against potential title defects. Subsequently, Atlantic assigned the mortgages and secured debt to Preservation Capital Consultants, LLC. In 2008, Monarch Development sold its parcel and paid Preservation Capital money to release its lien on that property. Then, Monarch defaulted on its loan agreement with Preservation Capital. Preservation Capital discovered Monarch Development never owned the parcel; instead, Monarch Holdings owned it. Monarch Holdings later transferred the property to a third party without payment or notice to Preservation Capital. Preservation Capital ultimately foreclosed. Atlantic purchased the property at the foreclosure sale by way of a credit bid. After foreclosing on the parcel, Monarch Development owed Preservation Capital a remaining balance. Preservation Capital filed a claim under its policy with First American for the amount it was unable to collect on the one of the other parcels due to the title defect. First American denied coverage. Preservation Capital filed this action when First American refused its claim. Both parties moved for summary judgment. First American Title Insurance Company appealed the circuit court's order granting summary judgment in favor of Preservation Capital. First American argued the circuit court misconstrued the terms of the title insurance policy in finding Preservation Capital was entitled to recover under the policy. Finding the circuit court properly granted summary judgment in favor of Preservation Capital, the Supreme Court affirmed.View "Preservation Capital v. First American" on Justia Law