In equitable subrogation cases involving refinances, courts have often been persuaded to grant lenders relief because the junior lienholders have not been prejudiced by the refinance, which generally reduces the borrower’s interest rate and puts them in a better financial position in theory. But are junior lienholder always prejudiced in another way by refinances without subrogation agreements?

It’s the exception to the rule, but in at least one state, title searchers can be successfully sued directly by a buyer in a real estate transaction when the searcher has missed something, even in the typical case where the searcher is performing the search for a title insurer or lawyer or other client, and has had no contact with the buyer.