§ 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:

(a) has not been fully paid; or

(b) has not been partially paid in an amount agreed to by the beneficiary, mortgagee, or servicer as sufficient to release the mortgage or reconvey the trust deed; 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.

Amended by Chapter 403, 2013 General Session