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I think some of the confusion here is that the words tailgate and liftgate are swapped around.
A tailgate folds down to open. It is on the bottom. You sit on it at a tailgate party. Pickup trucks have tailgates (I never heard of a pickup truck with a liftgate).
The liftgate lifts up to open. It is on the top. It is similar to a hatchback (horrors, and apologies to the faithful).
You appear to be saying that the top part (liftgate) doesn't latch unless the bottom part (tailgate) is folded up first. That is entirely normal, and is the way it is designed.
Jeff
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2007 X3 3.0si, 6 MT, Premium, White
Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue
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