57-1-42. Liability of title insurer or title agent.
A title insurer or title agent purporting to act under the provisions of Sectionwho 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: has not been fully paid; or 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) the title insurer or title agent failed to comply with the provisions of Sectionsand; or 57-1-40 57-1-41 the title insurer or title agent acted with gross negligence or in bad faith in reconveying the trust deed.