Re: Payoff Mistake ? Should I Pay It? - Posted by Kristine-CA
Posted by Kristine-CA on October 26, 2003 at 20:16:00:
Alex: I’m not an attorney, but my understanding from the title policies that I buy is that the title company is responsible for discovering any recorded liens. If it is listed on your title report, that it would seem it is covered. But I’m wondering about the gray area of the HOA reporting the wrong amount in the demand. The title company paid the amount requested and probably thinks they are not responsible. The HOA probably thinks they can correct a demand after the fact??
Wouldn’t that be like BofA deciding that amount of the payoff is different after closing of escrow.
My suggestion would be to call your title company and ask how binding the demand amount is/was. I’ve never seen a demand, but I’ve always assumed that it is a signed statement where the signer agrees that the amount stated is the amount to clear the debt. If your escrow or title officer doesn’t have the answer, then ask to speak to their legal department.
My other concern would be if the HOA would then attempt to file an additional lien for the unpaid amount.
Keep us posted. I, too, wonder what title insurance is for sometimes.