57-1-42 - Liability of title insurer or title agent.
57-1-42. Liability of title insurer or title agent.
A title insurer or title agent purporting to act under the provisions of Section 57-1-40 whoreconveys a trust deed or releases a mortgage is liable to the beneficiary or mortgagee for thedamages suffered as a result of the reconveyance if:
(1) the obligation secured by the trust deed or mortgage has not been fully paid; and
(2) (a) the title insurer or title agent failed to comply with the provisions of Sections57-1-40 and 57-1-41; or
(b) the title insurer or title agent acted with gross negligence or in bad faith inreconveying the trust deed.
Enacted by Chapter 185, 1995 General Session