I was HORRIFIED when a customer contacted me about a title policy from a local title agent for his $1,000,000. Owner’s Title Policy being done in conjunction with a mortgage policy. The title commitment gave virtually no information other than owner, taxes and outstanding mortgage information. Because the buyer wishes to place an additional storage building on the property, the real estate agent inquired about location of any easements and restrictions. The Title Agent said something to the effect that they “no longer attempted to look for such things, they just insured over any problems.”
As an abstractor and educator who has been advocating the new 2008 ALTA Owner’s Policy, I was shocked! Even a most basic search should show easements and restrictions. Not looking for these leaves the underwriter open for all sorts of expensive title claims.
I would like to hear if others are seeing title commitments like this, or if it is just a lazy, rogue title agent who controls a lot of business and has buffaloed its real estate agents into thinking they are doing the consumer a favor by buying an expensive piece of garbage. Someone needs to start SCREAMING about this. I believe these agents are perpetrating fraud on the consumer.