04.21.08
Another 5 Minute Automated Title Search Claim
I believe in automated title plants. They are a good thing. Not to have to drive to the Courthouse every day, not having to physically handle musty, dusty, heavy old books. Not having pull microfilm, aperture cards, paper copies, all of which deteriorate as they are handled. Not to worry about natural disasters like fires and floods that wipe out public records. These are all good things.
But I hold the line when a company, like TitleEDGE, advertises it can provide:
“complete automated searches and preliminary examinations via a variety of title and foreclosure products in an average of five minutes. These results include the chain of title, general or name index, taxes maps, and other items are then, according to the company, “reviewed by a qualified title professional and delivered to title company customers in as little as 15 minutes.” After a review by the title company, the completed title product can be delivered to their customers in as little as one hour.
Once again, it would appear that whomever is using this product is moving towards casualty insurance. Yes, you can tell me that a competent title search, one showing all easements, restrictions, judgments, special assessments and dozens of other potential hazards is available in 5 minutes, but I do not believe it. A good title commitment and policy require significantly more oversight than that. It makes me angry to suggest that a 5 minute search is accurate and true. What is true, is that the product spit out is a weak, cheapened version of what was a formerly strong, healthy product.
Why not admit, creators and users, that the goal of this product is to simply keep costs down, and give faster delivery time. Keeping costs down and fast delivery are good things, However, the claim is also “improved accuracy,” and that is a fallacy. A good title product requires spending time to LOOK at each of the actual documents. That is the POINT of the recording system, to put in writing the intentions of the buyers, sellers, lenders, easement holders, etc. etc. etc. If you do not take a GOOD look, and use your noodle to figure out what is missing or wrong in the picture, the work is worthless.
The hands-on method is still the best. I applaud those who take the time to LOOK at ALL the information. Underwriters and agents who endorse use of such Five Minute Title Searches beware. You will have higher claims, and ultimately both you and your customers will pay an enormous price.