As a real estate attorney at Los Angeles based Schorr Law, we are using litigation guarantees more and more. While they are not generally required, then can be useful in many situations.
A litigation guarantee is essentially hybrid between a title policy and an insurance policy on the litigation. In certain types of cases, like quiet title, foreclosure of judgment liens, condemnation and declaratory relief actions, the plaintiff is required to determine the existence and identify of all parties that must be joined in the lawsuit in order to achieve the purpose of the litigation. This litigation guarantee offers the litigant the protection or insurance that they have named all of the proper parties.
For example, when we attempt to force a sale to satisfy a client’s judgment, we obtain the litigation guarantee to determine all senior lien holders who must be paid off before the judgment creditor can obtain the proceeds of the sale. In that situation, is important to properly identify all the senior lien holders. By obtaining a litigation guarantee, we get a document that looks very similar to a title report which identifies all lien holders. The judgment creditor is then protected from suits against lien holders not listed in the litigation guarantee by virtue of the litigation guarantee issued by the title company. In that respect, it acts like a title policy, but the title policy is issued in connection with the litigation instead of the traditional way title policies are issued in connection with a sale of real property.
For help with your Southern California quiet title, declaratory relief, judgment lien foreclosure or any other real estate matter, contact Schorr Law, APC, 310-954-1877, email@example.com.