Legal Question in Real Estate Law in New York

Owner of a NY home died and left the home to his 2 children. They didnt probate his estate. The deed still shows the original owner as the owner. One of the children continued to live in the home(son)and the other (daughter)married and moved out. They agreed to allow him to stay in the home and upkeep it.Several years later he took out a mortgage on the home which was approved and issued. The title company was unaware that the daughter existed. The son failed to make payments on the loan and the bank wanted to foreclose. His defense at the court was that the loan shouldn't have been issued because the title company failed to do their job and should have known that the daughter was half owner.He also questioned how it was possible that a 30 year loan could be given to a 67 year old person without doing a proper income check. The son hasn't worked in 30 years. The judge posponed the foreclosure. The title company then subpeona the daughter to depose her. They realized they made an error when they gave the son clear title. (they didnt realize that a daughter was still alive) Now to the question. The daughter got legal counsel to represent her interest in the property and has incurred fees because the title company failed to convey good title to the bank. Can she be reimbursed for all cost incurred (deposition and court cost) because of their error? Thanks in advance for all responses and question you may have.

Asked on 2/28/12, 10:53 am

Michael Markowitz Michael A. Markowitz, PC

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Q. Can she be reimbursed for all cost incurred (deposition and court cost) because of their error?

A. Generally, no.

Mike.

Answered on 3/01/12, 6:27 am

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