Opinion ID: 1264855
Heading Depth: 3
Heading Rank: 1

Heading: The Title Insurance Matter

Text: Respondent represented both seller and purchaser in a real estate closing. The property was encumbered by a mortgage, but Respondent failed to inform the purchasers, lender, or title insurance company of the encumbrance. The purchasers requested and paid for a title insurance policy, but Respondent failed to issue the policy. The purchasers hired a different attorney, Mr. Barnett, after being served with a foreclosure action for the property. Respondent informed Mr. Barnett that Respondent had issued a title insurance policy to the purchasers, even though he had not. The title insurance company ultimately assumed representation of the purchasers, and Respondent assured Mr. Barnett that he would pay Mr. Barnett's fees and costs. Respondent failed to do so. Respondent misrepresented to his partner, Mr. Patrick, that he had paid Mr. Barnett. Mr. Patrick paid Mr. Barnett $1,200 on Respondent's behalf and Respondent has not repaid Mr. Patrick. The subpanel found Respondent violated the following Rules of Professional Conduct found in Rule 407, SCACR: Rule 1.1 (Competence); Rule 1.2 (Scope of Representation); Rule 1.3 (Diligence); Rule 1.4 (Communication); Rule 1.5 (Fees); Rule 1.7 (Conflict of Interest); Rule 4.1 (Truthfulness in Statements to Others); Rule 4.4 (Respect for Rights of Third Persons); Rule 8.4(a) (Misconduct-Violation of Rules of Professional Conduct); Rule 8.4(d) (Misconduct-Conduct Involving Dishonesty, Deceit and Misrepresentation); and Rule 8.4(e) (Misconduct-Prejudice to the Administration of Justice).