Titling company misplaced cashiers check

[Kat Rathell]

So, 3 months ago after we closed on one of our investment properties the titling company misplaced our cashiers check for a portion of the closing costs, in the amount of $10K.

They reached out to see if the check can be canceled and reissued, and we found out from the bank that we have to wait for 90 days.

We did, and now the bank stated that yes, they can reissue the check, but we have to sign a disclaimer that contains a tricky provision stating that in the event someone comes in with the original check, they’ll have to honor it - at our expense.

What can we do to make sure we get this resolved, but do not open ourselves up to having to pay it again, *** years down the road? We don’t think the titling company may do so intentionally, but people come and go, and someone may find the check in a wrong file folder in 5 years and decide to cash it to be thorough.

Thank you!

[Clint Votruba]

You stated:    "So, 3 months ago after we closed on one of our investment properties the titling company misplaced our cashiers check for a portion of the closing costs, in the amount of $10K."

I do believe you have an obligation to replace the lost $ 10K check but there should be no risk to you in doing so.  Frankly, the fact that the title company is asking you for a new check after 3 months is rather "funky" and evidence of poor management.

You stated:   "...they can reissue the check, but we have to sign a disclaimer that … in the event someone comes in with the original check, they’ll have to honor it - at our expense."

Frankly, I thought that a "stop payment" on a check would handle this situation at no risk to you but that may not be the case if you paid the $ 10K with a "cashier's check".  I understand that there is a bond for lost cashier's checks that you can pay to the bank or a third party insurance company for coverage in this situation.  If so, the title company should/would pay for the bond and name you or the bank as the insured.

I agree with @ Catherine Emert and the title company may offer to indemnify you against loss and that might be ok if the title company's name is Chicago Title Insurance Company and not Mom and Pop Title Company.

Either way, make sure you feel comfortable with your final decision because you should not take on any additional risk under these circumstances.

Good luck.