Legal Question in Real Estate Law in California

We purchased a home in California and escrow closed on May 8, 2009. We paid $261,900. The property taxes we were asked to pay were based on an assessed value of 542,000. I asked all the parties involved why we had to pay this amount, and we were told that we would be refunded the overpayment by the county within a year. Last month we received a refund of $41. The amount we overpaid was over $500. I investigated and found that the rest of the refund was issued to the previous owner (a bank- it was a foreclosure) 3 days before the close of escrow because the property had been re-assessed at $310,000 when title passed to them. The escrow co. says they don't think they can do anything to get us our portion of the refund.. What recourse do I have?


Asked on 1/04/10, 11:30 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I'm not sure, but I'd guess that the escrow company made a mistake by pro-rating the taxes based on old information, and therefore may be vulnerable to a small-claims lawsuit. It could also be that the bank is at fault for failing to report the tax activity to the escrow holder prior to the closing. Let's see if the other LawGuru attorneys have another point of view.

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Answered on 1/10/10, 9:12 am


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