Legal Question in Credit and Debt Law in California

liability

I recieved a letter on may 03,2005 from a tax service company.The company recently discovered that they paid my home property taxes in error on 03/26/03. I sold the property in november of 2002. The home loan however was still in my name due to the fact that the party that bought my home was attempting to assume the home loan which was found later not be an option and financed under their own lender. I did have an impound account with my lender for payment of my property taxes.I also may have received a refund from my lender because my taxes had already been paid but don't remember. My questions are am I liable for this? Is there a statute of limitations since this was over two years ago? Can they send me to collections and ruin my credit since they have no binding agreement written or verbal?


Asked on 5/25/05, 10:28 am

1 Answer from Attorneys
J. Spikes Property Law Center

Re: liability

Depending on what the contract provides, they could send you to collections and ruin your credit. You probably signed a contract when you started letting this tax service pay your property taxes. That would make the statute of limitations four-years for any actions arising out of the contract. If there is no written contract, the action on any "contract" cause of action is two years. However, there are several claims they could make that have three year statutes of limitation.

I suspect there is a clause in the contract you entered into when you signed on with them, that covers a situation like this. I suggest you carefully read the initial contract and consult an attorney if you are still unsure. No one can really give you a complete and accurate answer without reviewing the contract. Good luck.

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Answered on 5/25/05, 5:46 pm


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