Recording of Deed Without Authorization

[Souix]

What is the name of your state? Oregon


What recourse do parties in a residential transaction have with regard to the title company recording the deeds without funds and no authorization to do so?

 

[HomeGuru]

What is the name of your state? Oregon


What recourse do parties in a residential transaction have with regard to the title company recording the deeds without funds and no authorization to do so?

**A: file a complaint witht the state regulatory agencies and also litigate in civil court.

 

[nextwife]

Title Companies are FREQUENTLY provided deeds without funds with the expectation that they should record them. Frequently, the title company is not part of the closing process and only asked to record.

Exactly WHAT are the circumstances that caused them to have possession of the deeds? Were they also the closing agent? Or just provided the title insurance? Do you know what escrow or closing instructions they were provided with the deeds in question? It is hard to know from what you posted if they were even at fault.

 

[HomeGuru]

Good questions.

 

[Souix]

Title Companies are FREQUENTLY provided deeds without funds with the expectation that they should record them. Frequently, the title company is not part of the closing process and only asked to record.

Exactly WHAT are the circumstances that caused them to have possession of the deeds?


***They were the closing agents/company***


Were they also the closing agent?

***Yes***

Or just provided the title insurance?


***Yes also providing the insurance***

Do you know what escrow or closing instructions they were provided with the deeds in question?


***They were given verbal instructions by the buyer and myself not to record the deeds until we got the clear dry rot report. The bank wanted a clear pest and dry rot report as one of their conditions. The inspector issued a clear "Pest" report only and not a clear "Dry Rot" report. We were waiting for a contractor to come out today to make his inspection so we could get the clearance. The bank authorized title to record anyway without the Dry Rot clearance***


It is hard to know from what you posted if they were even at fault.

***I had called escrow first thing yesterday morning and spoke to the closer. Told her to hold off on recording until we got a clearance. She said no problem. I then got a call from the llisting agent last night, the deeds had recorded anyway***

So I guess I am amending my first question, because when I spoke to escrow this morning, the bank DID authorize recording with funds but the bank did not not abide by their condition of needing a clear Dry Rot report. I suppose this is a case of the left hand not knowing what the right hand is doing.

Why would a bank not abide by their conditions? This is a major bank too.***

 

[Souix]

I guess I should add that I spoke to the listing agent about this last night and we agreed that one of us would call escrow in the morning to see if they could hold the seller's check until we got the clearance from the contractor today. I called this morning and escrow said no one had told them to hold off on the recording and the file had been paid out, but the seller's check was still there. I asked her to see if she can hold onto it until the end of the day and she was going to check with her manager.

Is it legal for them to do this? What do I need to do or say to get them to hold the seller's proceeds.

 

[Souix]

I guess I should add that I spoke to the listing agent about this last night and we agreed that one of us would call escrow in the morning to see if they could hold the seller's check until we got the clearance from the contractor today. I called this morning and escrow said no one had told them to hold off on the recording and the file had been paid out, but the seller's check was still there. I asked her to see if she can hold onto it until the end of the day and she was going to check with her manager.

Is it legal for them to do this? What do I need to do or say to get them to hold the seller's proceeds.

****UPDATE - Just got off the phone with the escrow manager, they are HORRIFIED. Seller has authorized the holding of his proceeds until this problem is cleared. I am still mystified as to why a large bank would not abide by their conditions. The problem was that the buyer wanted to know if there was any problems behind a tile surround in the shower. There was a huge moisture content because of a bathroom window inside the stall. So if the tile is torn off this afternoon and there is a problem, then what do we do?***

 

[HomeGuru]

Post back later.

 

[Souix]

Contractor found extensive dry rot in the window silll and the cause of the moisture was that water was getting in down through the window sill and had saturated the insulation. The problem is being repaired, along with any mold and mildew problems, the contractor is making a statement in writing so we can get a clear Dry Rot report, but what if the seller refused to repair this? Or even worse, what if we all just ignored this, let the bank forget they wanted the clear report and just go on our happy way? The buyer could have sued us all, isn't that correct?
Should I send the clear Dry Rot report to the bank?

 

[HomeGuru]

Contractor found extensive dry rot in the window silll and the cause of the moisture was that water was getting in down through the window sill and had saturated the insulation. The problem is being repaired, along with any mold and mildew problems, the contractor is making a statement in writing so we can get a clear Dry Rot report, but what if the seller refused to repair this?

**A: then you must read the contract.
********

Or even worse, what if we all just ignored this, let the bank forget they wanted the clear report and just go on our happy way? The buyer could have sued us all, isn't that correct?

**A: yes.
******
Should I send the clear Dry Rot report to the bank?

**A: yes.

 

[Souix]

Thank you, hopefully this will help other people in this situation

 

[HomeGuru]

I hope so too.