Q: Any recourse for title co. incorrectly reported legal desc and forcing another delay in closing escrow? Loan was funded.
I'm trying to close escrow on a probate property in LA county, CA. After 2 yrs of court proceedings, the surviving siblings were awarded equal shares of the pending sale by the court. My loan was approved and funded and then title company comes back and say that they messed up and originally submitted the incorrect legal desc track #- now I have to wait again for the court to record the corrected title before escrow can close and I get the keys. Is there any recourse or monetary compensation for me? You would think that this error would be discovered long before the court hearing (that was in October). I have invested over 4mos worth of time and patience to be rewarded with this, while I have to pass on other potential homes.
A: It is doubtful that any cause of action exists as title companies do not represent anyone. It is totally different when you hire an attorney, which is what anyone should do if transacting in real property. Sometimes Negligent Misrepresentation is possible, but very doubtful. Consult with a CA attorney that actually does real property litigation, not just transactions.
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