Got an interesting question and would like to seek advise from both side of story - Good and Bad. Here it is ...
During the purchase of a home, a well known Title Company had mistakenly double paid Texas Fair Plan Association (govern by state of Texas) an insurance premium on behalf of the purchaser on the house. The double payment came in this manner
1) During closing - rightful transfer of funds from purchaser to Texas Fair Plan Association
2) One month after closing, the Title Company paid Texas Fair Plan Association the 2nd time on the same transaction
Texas Fair Plan having the premium paid twice refunded one of the premium to the Purchaser. Texas Fair Plan is governed by Texas Law and is believed to only refund the premium to the homeowner only. Texas Fair Plan issued a letter to the Purchaser requesting the purchaser to reimburse the premium to the Title Company.
In this case the Title company suffer a lost of the premium.
1) Does the Title Company have claims over the purchaser who is unjustly enriched? What is the best way to recover the funds? Through small claim court?
2) Technically the purchaser own a extra premium to the Texas Fair Plan not to the Title company. Does the letter of reiumbursement request constitute a valid document to assign the rights to those funds to the Title Company?
3) The Title Company used a debt collector to pursue the premium. The tile company claims that this is a debt to the Title Company, is this valid? There is not a judgement but just a one sided claim. Why yes? or Why no?
Any inputs would be deeply appreciated.