A Harris County district court has ordered Stewart Title Guaranty to pay $2.8 million to a Sugar Land developer after the title company failed to pay out on a title policy. Back in 2007, Ponderosa Land Development was hoping to build a Chase Bank branch at the corner of Settlers Way and Highway 6. AmeriPoint Title, the title company for the transaction, had obtained title insurance from Stewart Title to cover its work. But AmeriPoint’s title search failed to uncover a deed restriction on the property that specifically prohibited banks from being built on that site: “Stewart Title only offered to pay $200,000 of the $1.83 million title policy, arguing that the land was not worth that much.
[Ponderosa's James] Chang says the purchase price was dictated by the value of the property with the ground lease to JP Morgan and planned sale of the bank to an investor upon completion.
Ponderosa is now free to sell the vacant property. Houston Suds has had a contract to buy the site for $953,000 since November 2008, but could not close the transaction and build a car wash until the legal matter was resolved.” [Houston Business Journal; previously on Swamplot]