Legal Question in Real Estate Law in California

Re: Are escrow title liable for their mistakes?

Your facts suggest that a cross-complaint against the title company would be appropriate, but the analysis of whether it is better to talk or negotiate your way out (e.g. by signing the requested quitclaim) rather than participating in the litigation must be done by your attorney after reading everything, including looking for arbitration and attorney-fee provisions in the underlying contracts. If escrow company negligence was the legal cause for your losing out on an advantageous home purchase, this tips the scale towards suit for damages -- the law expects licensed escrow companies to perform competently.

Re: Are escrow title liable for their mistakes?

The seller sued you because the only way to "quiet title" against any claim of ownership by you and/or remove the "cloud" created by the erroneous recording of the deed is to sue for quiet title against the grantees (you), or get the title company to straighten it out by getting a quit cliam deed from you. Tell the title company that you will be happy to provide them with a quit cliam deed to record, if they FIRST obtain an agreement from the seller to dismiss the suit with prejudice, or if the title company will indemify you for any out of pocket expenses you incur due to their error. Lastly, there is no way for consumers or non-consumers to anticipate and protect against the negligence or incompetence of others; all you can do is take the appropriate action when s--- happens.

Re: Are escrow title liable for their mistakes?

There is absolutely no reason for you to litigate a quiet title action to property that you know in good faith that you do not own. Given your circumstances, the mistake was not even your fault. If you have an attorney, I would recommend having him contact the person suing and execute any documents (such as the quitclaim deed)to clear the title to the property.

There is no reason to play brinksmanship in a situation that you did not create. They simply want clear title, and you do not own it. Why go to war over nothing?

Very truly yours,

Re: Are escrow title liable for their mistakes?

your situation simply boils down to a title company mistake, which is fairly common unfortunately. the seller has only named you on the suit because his "attorney" told him to do so in order to cover all possible legal angles and parties of interest. The seller is truly going after the title company, not you, especially since you did nothing intentionally or negligently here. you were simply put on title via the error of the title company at issue. all you have to do in essence is quit claim the deed back over to the seller to clear this matter up, however, make sure you are protected legally when you do! if you would like further assistance, just contact us directly today.

Re: Are escrow title liable for their mistakes?

This makes no sense. Prior to filing the lawsuit, did the "seller" make demand upon you to execute a quitclaim deed? That would be the easiest way to resolve this.

You should seek out an attorney.

Re: Are escrow title liable for their mistakes?

Do you still want the property? If so, counter-claim for quiet title and declaratory relief and offer the original sales price. You may also name the escrow in a cross-complaint (although this is risky), if they were at fault in not allowing the escrow to close timely. If you want to keep the property, contact an attorney ASAP. Good Luck.