Legal Question in Real Estate Law in California
Title Company Not Cashing the Check
We bought a house and have been
living in it for a month. We had a
$5000 deposit that the Title
company was supposed to cash
when escrow opened. They still have
not cashed the check and sent the
check back to us with all of our
papers after it recorded and funded.
How long do they have to cash it or
ask for the money?
2 Answers from Attorneys
Re: Title Company Not Cashing the Check
Probably 3 to 4 years. My guess is, they will eventually remember.
Re: Title Company Not Cashing the Check
This is a question you should be asking the title company, not LawGuru.
It sounds like a mistake on their part, but it could possibly be your mistake instead. I suggest as a starting point that you carefully examine the closing statement to see what charges and credits were made to your "ledger" during the escrow and at closing. This should add up to zero, with charges and credits, or debits and credits, equal. Possibly they got the $5,000 from some other source. Also compare the escrow closing statement with the purchase agreement. It's possible you were entitled to this refund.
Other than that, all I can say is "Who knows?" And the answer, I think, is that the escrow company either knows, or can figure it out for you. Make an appointment to visit with the escrow officer that handled this escrow at his or her office.
If a mistake were made, and you owe the $5,000, the escrow holder would probably have four years within which to bring a legal action to compel you to pay; after that, the statute of limitations would probably kick in and a demand would not be enforceable.