04.21.08
Another Claim for an Accurate Five Minute Title Search
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, not to mention heavy old books. Not having to 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 providing 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. I know from experience, a good title commitment and policy require significantly more oversight than that. It makes me angry to suggest that a 5 minute title commitment is accurate and true. What is true, is that the resulting product is a weak, cheapened version of what was a formerly strong, healthy title insurance product.
Why not admit it, 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! Things a computerized title plant can offer. However, the claim of “improved accuracy,” in a title commitment? Now 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 when examining title, the work is worthless.
I applaud those title agents and underwriters who take time to thoroughly LOOK at the documents, the good old-fashioned way…those who use their knowledge and expertise to put out a worthy product. We know legal documents contain a wealth of important information for our clientss and we need to inform our customers of what those complex documents mean to them. But, those who endorse and use of Five Minute Title Searches - beware. You will suffer mightlily with higher claims and your customers will suffer too.
New Yorker said,
April 26, 2008 at 8:16 am
THE SPLICER- Google TitleEdge, click on the links to create a paper trail. You will find a clear link and partnerships with large software corporations who serve as databases for governments including county clerks and recorders offices throughout the US. One is ACS. When you walk into a county clerk’s office and work on a computer. Data flows through private databases who serve as a saftey net and data is not lost. Think of it like this…record a mortgage, then entered in the public records which is stored in a software program handling the entire system for the county clerk. That system is served by ACS among other competing companies. The data is not only stored, it’s sent to another database and compiled into an automated system. So while the local title agent visits the county offices, the major players already have the same data as you. The information is spliced between two databases. Underwriters are tightening the noose on agents and they partner with the companies that hold the data. By signing up a bank, realtor, builder and lawyer, the underwriter receives a much larger remittance. Furthermore, even if the bank, realtor, builder and lawyer do not know much about examining title, the underwriter will do the work for them….the 5 minute title committment. Go spend time searching…once your finished, you’ll then start to rethink where your career is headed. By the way, it doesn’t matter if the county offers online public searching. The worst note is the communities are losing millions in revenue together with employment. Revenue is no longer shared within same.