Payoff Mistake ? My Repsonsibility? - Posted by Alexis (CA)

import · October 26, 2003, 2:58pm

Posted by River City on October 28, 2003 at 11:30:29:

Call a different title company and ask them. Just give them the scenario and ask them if they would be responsible or would you be responsible for paying the lien. Good luck.

import · October 26, 2003, 2:58pm

Posted by Alexis (CA) on October 26, 2003 at 15:58:35:

I bought a property with title insurance. The deed has already been recorded by the title company. Escrow is closed. One and a half weeks later, my title company calls and tells me the HOA made a mistake on their demand letter. The HOA forgot to include $900 for a HOA lien and to work it out with the HOA. I specified buyer (me) would pay all liens, not the seller.

I want clear title for my buyer down the road, when I sell. Who is responsible for the mistake? Should I pay for this? Should I negotiate this amount down? I could pay this amount. However, I am not sure if this is why I bought title insurance for.

import · October 27, 2003, 6:57am

Re: Payoff Mistake ? My Repsonsibility? - Posted by River City

Posted by River City on October 27, 2003 at 07:57:40:

I agree with calgirl. If there were liens against the property at closing, the title insurer should have found them. That is what they are being paid for.

import · October 26, 2003, 6:18pm

Re: Payoff Mistake ? My Repsonsibility? - Posted by calgirl

Posted by calgirl on October 26, 2003 at 19:18:04:

You paid for Title Insurance, isn’t that what it is for? It sounds to me like your title company is responsible and if they say they are not then perhaps this deserves legal/small claims attention.

import · October 27, 2003, 9:37am

Re: Found, but Wrong Payoff Amount… - Posted by Alexis (CA)

Posted by Alexis (CA) on October 27, 2003 at 10:37:35:

Thanks River City.

The title company DID find the lien. The lien in dispute was on the title report. I paid all the liens off that were on the title report per my wishes for clear title, including the disputed HOA lien.

My title policy reads I am free from encumbrances, then lists some exceptions (taxes yet not due & payable). That lien was not on the list of exceptions, but is on the title report.

The HOA demand letter shows the disputed year of delinquent assessment. However per the HOA, the $900 for that year assessment was mistakenly not added in.

import · October 26, 2003, 9:00pm

Re: Payoff Mistake ? My Repsonsibility? - Posted by Alexis (CA)

Posted by Alexis (CA) on October 26, 2003 at 22:00:12:

Thanks calgirl.

I am thinking the same thing. Escrow is closed and I am on title.

I paid good money for title insurance and clear title. I would think it should be up to the title company to sort this out.