Section 57-1-42 - Liability of title insurer or title agentA 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 ,§ 3, eff. 5/14/2013.Enacted by Chapter 185, 1995 General Session