Legal Question in Real Estate Law in California

My wife bought a home about a year ago. The sellers as a requirement ask that we accept to an easement with adjacent property that was also on sale pending. They presented us with a plot map and after reviewing the map we agreed. As part of the sale they also ask that we use an specific escrow company.

A few months in we talk to our new neighbors about fencing the property and encroachment easement. They showed us the same plot map we got form the sellers and that is on escrow record. However they spotted a discrepancy in the description of the easement. In the description they would get a few more feet in their favor. They also stated that the sellers had promised them more then the plot map showed.

Since then we filled a claim with escrow company (they represent but us and the neighbors) . At first they sided with them because the "engineer" that did the plot map and legal description said he turn in the wrong paper work to escrow. They showed us a plot map that had a bigger encroachment easement (in favor of other party) and it did not even match the legal description on record.

Currently escrow keeps telling us that they are not even sure if this is covered in our policy.

My questions are is escrow liable for not checking this before selling us the property. They represented both our neighbors and us during the transaction. We feel since we closed escrow first and that the encroachment easement presented to us by the sellers is the same one on record that should be the "correct one".

Any advice would be much appreciated


Asked on 6/25/12, 11:37 am

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

First, I believe there is a tendency to prefer boundary descriptions on a map over inconsistent written descriptions, especially where both the map and a deed containing the written description have been recorded. Certainly this is the law in some states, and it appears to be in California as well. See, e.g., French v. Brinkman (1963) 60 Cal.2d 547. Also, see Civil Code section 3399, allowing a court to reform a contract based upon a mutual mistake of the contracting parties. The intent of the parties at the time of contracting would apply.

I'm doubtful that this is a matter that would fall under a buyer's title insurance. Whomever's negligence caused the deed error may be liable, and its insurance might protect it from losses. but probably not the buyer's.

More facts might be helpful in reducing the number of parties one would potentially need to sue to bring about a full resolution - the seller, the neighbor, the escrow company, the engineer, the title insureres are all potential targets. Further, this seems like the kind of dispute than can be worked out in mediation rather than through an expensive and rancorous lawsuit,

I personally believe the solution is to reform the deed to correspond with the map, which seems to reflect the intention of the seller in selling to both buyers.

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Answered on 6/25/12, 1:51 pm

Yours is not a question that can possibly be answered with even the slightest degree of accuracy without a review of the public record and the escrow files. I can tell you that it is not escrow's responsibility to police your transaction. They are a neutral holder of documents and funds that they then record and distribute in accordance with mutual instructions. Unless the escrow officer did an absolutely horrible job on behalf of their employer, you will find that your signature or initials and "Read and Approved" will be on every relevant document. That is how escrow companies assure they have placed responsibility for the accuracy of your documents and the transaction as a whole on the parties to the transaction. You will also find that this issue is not covered by your title insurance. Title insurance policies in California all exclude boundary issues unless you pay for a survey and get a special rider. Also, what is "on escrow record" is not very relevant. What was recorded in the PUBLIC records is what counts and may have to be corrected. That is why I cannot agree with Mr. Whipple that the map will be favored over the legal description. It might, but the issue only comes up if BOTH were placed in the public record AND the map contains written metes and bounds AND they conflict with the written description. You really need to contact a knowledgeable and experienced title and escrow attorney and have them review the matter with you.

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Answered on 6/25/12, 3:43 pm
Anthony Roach Law Office of Anthony A. Roach

You are a bit mixed up as to some legal terms. First of all, an easement is different than an encroachment. An easement is a legal right to access or do something on the land of another that would otherwise be a trespass. An encroachment is a trespass. An easement cannot be an encroachment because it presumes a legal right just by its very definition.

Escrow companies do not represent people or resolve boundary disputes. You are confusing escrow with title insurance. Sometimes the same company will perform both these functions during a purchase and sale, but all an escrow is is a third party that holds funds and documents in trust until both parties to the escrow have fully performed under the escrow instructions. Easements and easement problems are an issue of title insurance, not escrows, unless granting the easement was a condition of escrow.

I'd have to review the relevant paperwork and the property to tell you who was responsible for what

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Answered on 6/26/12, 3:55 pm


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