Posted by Natalie-VA on November 12, 2005 at 14:00:41:
Bambster,
I know you were aware of the “Red Tag”, but were you aware of the $3500 associated with it? If so, you should have made sure that it was paid for on the settlement statement. You probably signed a contract saying you would give marketable title or something similar to that. If you weren’t aware that there was $$$ associated with the “Red Tag” then there’s not much you could have done.
I don’t know how the title company could have missed it if they were doing their job. In my area, the deed gets recorded the day after closing. When the title company goes down to the courthouse to drop the deed off they do another run up on the title to cover the time since their search. They are supposed to do this to ensure that nothing else pops up to cloud title. Sounds like someone dropped the ball.
I’m not an attorney and real estate transactions are performed differently around the country, so I’m not sure if any of this even applies to your situation.
Title co wants abatement costs reimbursed - Posted by Bambster62
Posted by Bambster62 on November 10, 2005 at 22:03:21:
I sold property that had a Notice & Order to Abate (Housing and Dangerous Building Violations)in Sep of this year in Calif.
When I listed this property with the agent he was aware of the “Red Tag” and noted it in the property listing when it was for sale. The agent’s friend purchased the property also knowing of the “Red Tag”.
This property has since closed escrow and I have now received a letter from the Legal office of the Title company that recorded the transaction demanding that I reimburse the $3500 they had to pay for abatement costs to the county.
They claimed “This lien was recorded pror to the tile closing but was not picked up on the original Title preliminary report as it was dated prior to. Per reviewing the Escrow file it is noted that on July 18, 2005 prior to the close of this escrow that Bambster62 call our office inquiring on the status of the property being “red tagged by the county” and was aware of abatement issues”.
Is it my responsibility to pay this even though the listing, the agent, seller and buyer knew of this red tag and was listed on the flyer when the property was up for sale? This was listed in March and through a series of mishaps by the agent and title company we were finally able to close in September, ample time for the Title company to find out about the “Red Tag” issue. Advice please?