Legal Question in Real Estate Law in Illinois

Real Estate Fraud

A buyer presents a counterfeit cashier's check at closing which is accepted by the title company--name removed--seller receives check from title company--name removed--title is transferred to the buyer--name removed--the counterfeit check is returned unpaid by the bank--name removed--seller was not involved in the fraud--name removed--can the title company recover against the seller.


Asked on 4/03/07, 9:21 pm

3 Answers from Attorneys
Mary McDonagh McDonagh-Faherty Law Offices

Re: Real Estate Fraud

No, the Title Company will have to go after the Buyer.

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Answered on 4/04/07, 11:34 am
Joseph Michelotti Michelotti & Associates, Ltd.

Re: Real Estate Fraud

this is an odd question. are you the title company or its agent?

title company is liable due to its status as an insurer and per the escrow agreement. The seller did not do anything wrong, so i don't see any liability. best bet would be to go after the buyer.

(although collusion between byer and sell woul make seller liable)

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Answered on 4/03/07, 11:20 pm
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: Real Estate Fraud

The Seller did nothing wrong. Sue the Buyer.

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Answered on 4/03/07, 11:39 pm


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