08.04.06
Value of a Title Abstractor
I had an experience yesterday that got me to think’n. There was a woman in the courthouse yesterday who was not employed in a legal capacity. She was “searching” a property she wanted to buy because she didn’t want to pay an attorney. When she was done, she thought she had copies of the deeds in the chain, all of which had either a $5 or $10 consideration on it. She remarked to her companion (who was “helping” her) that that was “cheap”. Then because she had checked each person’s name in the Grantor’s book, she remarked that she ought to be able to get this property for a song because they paid so little for it and they didn’t owe any money on it. Well, I’d had enough (a state of mind must of you are now familiar with). I began to disabuse her of her “findings”. I told her that 1) she absolutely needed an attorney because a certain person was in her chain and he had been indicated for fraud for recording deeds on property he didn’t own, 2) that the Grantor’s book tells her nothing about mortgage, tax liens, judgements, mechanic’s lien, mental health liens, etc, etc, etc (ad nausem) and 3) I wouldn’t buy an acre of SWAMP land without a title search by a qualified professional, giving her the example in a neighboring county of a man who has successfully sold his property on three separate occasions on cash deals, property that is currently encumbered by over 2 million in federal tax liens (as you might expect, it’s in litigation).
She looked like a deer in the headlights—she had already bought the neighboring land from the same person who had the property for sale she was now searching. I asked her what that properties tax map number was, she told me. I pulled up the grantor’s name in the mortgage index—yes, you guessed it–there was a mortgage that was held on BOTH properties (the one she had already paid cash for and the one she was “searching”). She left with an attorney’s name.
What does my experience have to do with online records? Well, what is going to happen when people like this woman discover they can “search” all this online from home? If another abstractor and I had not been in the courthouse yesterday, this woman would be worse off than she already is. We certainly won’t be in her HOME!
This especially concerns me when you start thinking about the sheer number of IDIOTS who have bought a kit for $9.95 that’s going to make them rich with real estate flipping (which is the EXACT situation that brought about the situation in the neighboring county). Also, I’ve talked to people in the courthouse who have come in to get a deed on a property that is being sold at auction by the county. I’ve had some experienced people who know better, but most of these idiots, while they KNOW that buying from a private individual without a search is DUMB and they’d “never do THAT”, they think that if the COUNTY gives them a deed, its title is quiet!
I’m just wondering what everyone’s thoughts are on this issue OUTSIDE of its direct correlation to our industry.
Wendi See , SC www.lowcountrytitleexam.com
Jeanne said,
August 5, 2006 at 12:25 pm
Wendi - It just shows you - one should never underestimate the importance of your abstractor or title searcher! People who try to save a dollar by doing their own searches are taking a terrible risk. She thinks she can save money doing her own search, but is willing to give a stranger LARGE SUMS OF CASH. Ignorance is not always bliss.
Thanks for sharing! Jeanne
Jeanne said,
August 5, 2006 at 12:32 pm
Last week where someone was “searching” for a gas easement on their land. They just thought they would pull the deed and it would be there (it wasn’t - duh). Then they went into the lease room (where I was working) and pulled ONE book, found a lease, and declared it must be the gas lease and started complaining about not receiving royalties on that lease. Just curious, I looked over my shoulder and saw a nice big, red cancelled stamp on the page she was reading. I asked the woman if that was what they thought was their lease and she said it was. I then informed her it was cancelled (read the stamp) and she got very upset and wanted to see the release. Then she demanded the recorder explain the cancelled lease to her. Even the recorder was confused, since it was clearly cancelled what was the question?? Anyway I just told her briefly how she needed to go through all the books, looking at every property owner who had owned that parcel of land, pull every document found, read them, and MAYBE she would find the lease. She just got more upset and started yelling at me she couldn’t afford to pay an attorney to find this stuff and she was told she could do it herself and why would someone make it that hard. I ended up walking away since I don’t need to be yelled at for pointing out a lease was cancelled and how to find one. I truly try not to get involved in those types of situations, but I thought I was being “nice” to point out it was cancelled. HA!
Wendi