[WSBARP] Ommission of Property Taxes in Title Report

[Jay Goldstein]

Good question—pls respond to the list.

I would contact escrow company and submit a claim.

J

Jay A. Goldstein
[cid:AEF18ED8-6AEE-403C-99E7-30A379E62D84 at local]
1800 Cooper Point RD SW NO. 8  |  Olympia, WA 98502
Telephone 360.352.1970  |  Fax 360.357.0844 |  www.jaglaw.net<http://www.jaglaw.net/>
jay at jaglaw.net<mailto:jay at jaglaw.net>

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Randall Cornwall
Sent: Tuesday, December 06, 2016 1:59 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Ommission of Property Taxes in Title Report

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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