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socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39183
Experience:  Attorney and Real Estate broker -- Retired (mostly)
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My escrow made a mistake on security on promissory note, and

Customer Question

My escrow made a mistake on security on promissory note, and borrowers have defaulted
Submitted: 2 years ago.
Category: Real Estate Law
Customer: replied 2 years ago.
Escrow added UCC1 filing of Liquor License, and Furniture Fixture & Equipment as security on the promissorynote, and I've just found out, that Liquor License cannot be used as collateral, at all. Can escrow company be sued?
Customer: replied 2 years ago.
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Expert:  socrateaser replied 2 years ago.


Escrow agents are not authorized to practice law. By drafting a promissory note, the escrow agency has engaged in the unauthorized practice of law, and that makes the agency "negligent per se," due to the violation of an important public policy.

Consequently, the answer is, "yes," you have case and you can sue. Provided that the statute of limitations on a professional nelgience claim has not yet expired.

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