Legal Question in Real Estate Law in California

Tittle Company Error
I purchase a new home before selling my old home. When my home was sold title company paid wrong 2nd mortgage. When they realized their mistake, they paid an additional 55K on correct loan, now after a year later they are sueing me for both loans that they paid off. Why am I responsible for their error? any help is greatly appreciated.

Asked on 4/26/05, 3:05 pm

3 Answers from Attorneys

Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

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Re: Tittle Company Error

I see no reason why. I would be happy to represent you. You will have to front attorney's fees for your defense, but I would do everything I could to get them reimbursed from title.

Answered on 4/26/05, 3:55 pm

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Roy Hoffman Law Offices of Roy A. Hoffman

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Re: Tittle Company Error

You would need to reimburse the title company only for the amount they paid to the wrong lender because they made a mistake and you benefited from their mistake (i.e., they paid off a loan for you that should not have been paid off). The theory is that you should not be unjustly enriched by the title company's mistake of fact (i.e., that they were paying the correct lender). However, you should not be responsible for repaying the amount they paid to the correct loan company, because that is what was supposed to have happened, but for their mistake.

I must admit, however, that something with your question does not make sense. First, title companies and escrow companies don't generally simply sue someone they believe owes them money. They generally attempt to secure payment without litigation. Next, are you sure that they didn't pay the same debt twice?

Answered on 4/26/05, 7:43 pm

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