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  5. 257 N.J. Super. 33 (1992)
 

SEARS MORTG. CORP. v. ROSE

257 N.J. Super. 33 (1992)

607 A.2d 1327

SEARS MORTGAGE CORPORATION, PLAINTIFF-RESPONDENT CROSS-APPELLANT, v. MICHAEL ROSE AND EMERY KAISER, DEFENDANTS-THIRD-PARTY PLAINTIFFS-RESPONDENTS v. COMMONWEALTH LAND TITLE INSURANCE COMPANY, THIRD-PARTY DEFENDANT-APPELLANT, AND JOSEPH F. GILLEN, THIRD-PARTY DEFENDANT.

Superior Court of New Jersey, Appellate Division.

Decided June 5, 1992.

Attorney(s) appearing for the Case

Ben J. Slavitt argued the cause for appellant Commonwealth Land Title Insurance Company (Slavitt, Fish & Cowen, attorneys, Ben J. Slavitt and Ronald G. Schecter, on the brief and reply brief).

Elizabeth J. Sher argued the cause for cross-appellant Sears Mortgage Corporation (Pitney, Hardin, Kipp & Szuch, attorneys, Elizabeth J. Sher and Mary Anne Broderick, on the brief).

Richard M. Fricke argued the cause for respondent Michael Rose (Daniels & Solomon, attorneys, Richard M. Fricke, on the brief).

Peter D. Ciancia argued the cause for respondent Emery Kaiser.

Daniel R. Hendi, Deputy Counsel, filed an amicus curiae brief on behalf of the New Jersey Lawyers' Fund for Client Protection.

John R. Weigel filed an amicus curiae brief on behalf of the New Jersey Land Title Association.

Before Judges SHEBELL, SKILLMAN and D'ANNUNZIO.

The opinion of the court was delivered by SHEBELL, J.A.D.

In this case we address the question of the liability of a title insurance company for the theft by a purchaser's attorney of the monies intended to be used for satisfaction of an outstanding mortgage on the premises being purchased where the title policy commitment expressly imposes as a requirement of fee-title coverage that the outstanding mortgage be paid and canceled of record and where no closing-protection...

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