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@Rusty Scott You are right on the 2% cap of the assessed value, but I think the issue that @Ryan Mullin was referring to has to do with properties being assessed incorrectly/poorly.

You never know what kind of DIY skills people have and I wouldn't want things fixed incorrectly to cause a bigger problem later.

You might start with a certified letter, state your desire to take care of reasonable charges, mention that their assumption that they would be billing insurance was incorrect, mention that you have been advised that there is no contract or supporting paperwork from them on file in your office, and that it would benefit everyone to get this taken care of expeditiously.

(did you even know that there are multiple MLSes, and that there is a such thing as an incorrect MLS)?

Is one of these incorrect or are you actually only putting 1.5%down?

I have spent a lot of time trying to get things entered in correctly. 

I assume, perhaps incorrectly, that title insurance would still cover against any issues.Jon

Taxes and insurance are typically incorrect, or at least based on the prior sale price.

Well James is sort of correct but some of terminology is incorrect.