[WSBARP] Ommission of Property Taxes in Title Report

[Randall Cornwall]

Listmates - I represent an independent escrow company who closed a
residential real estate transaction in King County last summer.  The
"Exhibit A" legal description of the title report lists two lots (A and B)
and 2 tax parcel numbers at the bottom of page (lets call them tax parcel
numbers "1" and "2").  The Schedule B of the commitment only lists the
property taxes due for parcel 1, and there is no reference to parcel 2
anywhere else in the commitment. Escrow closes the transaction.

6 months later buyer's lender contacts escrow and asks why taxes were not
collect for parcel 2 in closing.  Of course previous owner neglected to pay
taxes for parcel 2 for three years.  Lender has now advanced payment of all
delinquent taxes for parcel 2 and increased new buyer's monthly P&I reserve
payment to make up the difference.

My thought is that the title company is on the hook since parcel 2 was
never listed an an exception in the commitment, but is there a claim
against the escrow company for non-collection of taxes due for parcel 2
simply because it was listed in the legal description?

Your thoughts are appreciated.

Thanks, -Randy.
___________________________
Randall J. COrnwall
DEMCO LAW FIRM, P.S.
(206) 203-6000
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