Legal Question in Real Estate Law in California

We sold/closed on our California home in March 2022. A month later, we get a phone call that the escrow company failed to pay for the termite repairs at closing like they were supposed to and now we, the sellers, have to pay the termite company. Is this true? The escrow company made the mistake, shouldn't they pay it?

Asked on 4/20/22, 12:14 pm

1 Answer from Attorneys

Sorry, but you don't get out of paying a bill you owe, just because the party holding your funds forgot to pay the bill and gave you the money instead. When a bill submitted to escrow doesn't get paid, the seller gets more money than they should. The escrow company gave you the money to pay the bill. Also, you approved the seller's closing statement. Apparently you didn't notice the termite bill wasn't on there either. So it's a mutual mistake.

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Answered on 4/21/22, 5:11 pm

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