Posted by Rick, the Probate Guy on October 15, 2006 at 20:44:33:
I occassionally run into this problem, usually with institutional lenders as I’d never let my title company entrust delivery of a recon from a private lender after payoff.
In California, the penalty is pretty much limited to the $300 as defined in the civil code. Since your potential damages are considerably more, you have the choice about putting pressure on the the offending beneficiary without counting on getting being made whole.
Can I presume that your attorney is filing a Motion for Order to Quiet Title? This would remove the lien from attaching to the real property. However, that’s not the only legal remedy that I’m aware of (read on).
How did the bene get paid off? Thru an insured transaction six years ago? I’d start with approaching the title company that insured that transaction since they most likely received a recon for the property that was released. It was probably a “Satisfactionand Deed of Reconveyance” and, as such, should be considered as evidence that, since the debt was satisfied, the lien(s) where ever recorded, should be released. You could go back to that recorded document and re-record it in the county concerning the problem property. Your title company should work with you on this since they are, in part, responsible for the problem escalating.
If it were me, I would add the instrument # and recording info and, in the worse case, re-record in appropriate county, even as an exhibit to an affidavit, if recorder’s examiner is picky.
Also, your title company should offer to accept an indemnification by you in lieu of having to go the lost instrument or quiet title routes. Since there’s about a zero % chance that bonehead bene will make a claim, title company (and you) would have no effective exposure to such an arrangement.