The insured lender was selling their property under power of sale. The property was described as being together with an easement over adjoining land, which provided the only land access to the insured property. The adjoining landowner registered a declaration on title that the right of way did not exist. The lands in question had previously been the subject of a license agreement, which had since expired. The borrower's mother, who previously owned the property, conveyed it to herself and her son (current borrower) together with a right of way, which had never been granted by the adjoining owner.
Action:
The insured lender accepted an offer to purchase the property at a reduced price because of the lack of access, and we agreed to cover this loss.
