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 who reconveys a trust deed or releases a mortgage is liable to the beneficiary or mortgagee for the damages 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 Sections 57-1-40 and 57-1-41; or
     (b) the title insurer or title agent acted with gross negligence or in bad faith in reconveying the trust deed.

Enacted by Chapter 185, 1995 General Session