Associated Credit Union v. Pinto

We granted interlocutory review in this case to determine whether the trial court erred in holding that Daniel Pinto, Sr., has standing to bring an action for damages under OCGA § 44-14-3 c. For reasons that follow, we reverse the trial court’s decision. The record shows that in May of 2003, Pinto contracted with Carlos and Glenda Williams to purchase their home. Following the closing, the closing agent tendered payment to Associated Credit Union, the Williamses’ lender, in accordance with the payoff statement for the security deed held by Associated. The letter accompanying the payment cited OCGA § 44-14-3 c and explained Associated’s duty to cancel its security deed with the Clerk of Superior Court within 60 days of receipt of the payoff. Associated did not cancel the deed, however, because it maintains that the Williamses failed to satisfy Associated’s security interest by paying its attorney fees arising out of the foreclosure proceeding that was halted when Pinto purchased the property.

Four years later, Pinto began negotiations to sell the property and discovered that Associated had not released its security deed and that it remained as an encumbrance on the title to the property. Pinto engaged a law firm to pursue Associated for the cancellation of the security deed. In the meantime, on May 14, 2007, despite the fact that Associated had not cancelled its security deed, Pinto transferred ownership of the property by warranty deed to Chau Nguyen.