Legal Question in Real Estate Law in Maryland

Repayment of incorrectly wired funds

I sold a condo this spring. I was due $35,000 after paying off my loan, commissions, closing costs, etc.

The title company was to wire me the $35,000 due to me after closing.

Instead, they wired me the entire sale amount of the condo, $145,000.

I have since wired back $70,000.

What is my legal obligation to return the other $40,000, considering this was their error?


Asked on 10/27/03, 2:06 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Repayment of incorrectly wired funds

You can't profit from the title company's mistake. First of all, if they initially wired all of the sales proceeds to you instead of the net, it probably means they didn't pay off your loan, or they would have been out of pocket. Have you checked to see if your old loan is still open? If so, you're technically in default on the contract, since you haven't put yourself in position to convey clear title to your purchaser.

If somehow your loan has been paid off and all other closing costs paid, they the title company's out of pocket significantly. At some point they'll do an audit and discover the discrepancy, and then they'll expect their money back.

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Answered on 10/27/03, 2:19 pm


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