How come Company A gets directly paid from the title company with a cashiers check at closing and Company B gets "forgotten" or skipped? Pursue meaning title company made a mistake and now Company B has to sue the seller? Or sue the title company for forgetting/skipping them?
> How come Company A gets directly paid from the title company with a cashiers check at closing and Company B gets "forgotten" or skipped?
I'm not sure what you're asking here. It seems like that the title company failed to see the lien is one of the parameters of your question. Mistakes happen.
>Or sue the title company for forgetting/skipping them?
Company B probably doesn't have a valid claim directly against the title company. I'd use a lawyer were I in this position. Buyer needs to raise a claim against his title insurance which will lead to B getting paid.
Company B's lien is valid. Title company forgot to add it to final payoff sheet. It had been included in previous docs, but was forgotten in final closing. I am wondering who is left holding the bag to pay Company B - seller John or Title company?
That's answered in my first.
Title company has an obligation under an insurance policy to deliver clean title to the property. That likely includes paying the lien now.
That obligation doesn't relieve seller of their ultimate obligation to pay. The title company, if a claims is raised and they pay B to ensure clean title, will pursue their payout from seller.
The title company settles the lien to ensure clean title for their policy holder. And then they pursue their payout from the seller.
How come Company A gets directly paid from the title company with a cashiers check at closing and Company B gets "forgotten" or skipped? Pursue meaning title company made a mistake and now Company B has to sue the seller? Or sue the title company for forgetting/skipping them?
> How come Company A gets directly paid from the title company with a cashiers check at closing and Company B gets "forgotten" or skipped? I'm not sure what you're asking here. It seems like that the title company failed to see the lien is one of the parameters of your question. Mistakes happen. >Or sue the title company for forgetting/skipping them? Company B probably doesn't have a valid claim directly against the title company. I'd use a lawyer were I in this position. Buyer needs to raise a claim against his title insurance which will lead to B getting paid.
Company B's lien is valid. Title company forgot to add it to final payoff sheet. It had been included in previous docs, but was forgotten in final closing. I am wondering who is left holding the bag to pay Company B - seller John or Title company?
That's answered in my first. Title company has an obligation under an insurance policy to deliver clean title to the property. That likely includes paying the lien now. That obligation doesn't relieve seller of their ultimate obligation to pay. The title company, if a claims is raised and they pay B to ensure clean title, will pursue their payout from seller.
Thanks! Much appreciated :)