David,
That is an interesting story. I agree with you that the abstractor is probably the last party that should have suffered the claim. When property is conveyed from an entity other than a natural person, there is additional due diligence required by the title agent. This would include Articles if Incorporation, if applicable, a resolution by a board of directors, if applicable, trust agreement and all amendments thereto, whatever is necessary to ensure that the conveying party has the authority to do so. Much of what is needed may not even be available to the abstractor.
It would be interesting to know how the LLC acquired title to the property in the first place. Is there more to the story?
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