Read this post written by Ed Rybczynski on Active Rain. He articulates the title claim process very succinctly and WHY you want to avoid it.
You NEED title insurance because you NEED a thorough examination by a local and human title expert combined with a title policy to cover human error or items that could not be found in a prudent search.
You should NOT buy a title policy backed by examination conducted through an automated system or by remote clerks who may even be in another country.
Real estate is localized and understanding the nuances of a county or state or municipality are part and parcel of doing a good job. Most of what you pay in your title premium is for the expertise of the examination which is designed to avoid title claims.
Be a careful consumer and select your title insurer wisely.
2 comments:
I gotta agree. I work for a fatco brand name; fatco underwrites and examines our commitments. Most of their examines are off-shored and they are bad - and that's being nice. Assumption points? Running out legals? Understanding what's in a title chain (what hits and what doesn't)? Direct hit priors? Hello! These guys need help.
We try to catch as much of the mistakes as we can - but we just can't get them all. It's embarasing when customers catch the obvious errors (you know, when the examiner sets up a judgment that references a Lis Pendens, but then the Lis Pendens doesn't get setup? Then the customer (the attorney for your Lit) calls you up and asks you where said Lis Pendens is? I hang up the phone, check the chain, pound my head on my desk, and email out a supp.) And that's a Guaranty being examined in CA!! Even examines being generated in other states (besides overseas) are starting to fall apart by cut backs. (fyi-My shop is not in CA)
2 conclusions: 1) fatco doesn't care about it's product (quality is job one? I heard that once - not here); it really is all about the money - ALL THE MONEY (every penny).
The title insurance industry is in a sad state of affairs.
I agree, absolutely. Hi, TitleGuy. Glad you stopped by and sorry about what happened on that other post. Hope you got my message. ;)
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