Comments on: What Is the Purpose of a Title Company? http://www.calfinder.com/blog/general/the-purpose-of-a-title-company/ CalFinder Remodeling / Home Improvement Blog Fri, 20 Nov 2009 22:05:00 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Anna http://www.calfinder.com/blog/general/the-purpose-of-a-title-company/comment-page-1/#comment-2279 Anna Sat, 02 Aug 2008 22:38:20 +0000 http://www.calfinder.com/blog/general/the-purpose-of-a-title-company/#comment-2279 Hi Frank, Thank you for taking the time to share the historical information and for your additional insight. That is a good point regarding the localization of the lending process verses marketing the loans worldwide. Hi Frank,
Thank you for taking the time to share the historical information and for your additional insight. That is a good point regarding the localization of the lending process verses marketing the loans worldwide.

]]> By: Frank http://www.calfinder.com/blog/general/the-purpose-of-a-title-company/comment-page-1/#comment-2269 Frank Thu, 31 Jul 2008 22:32:38 +0000 http://www.calfinder.com/blog/general/the-purpose-of-a-title-company/#comment-2269 I agree with the article stating that title insurance was worth the cost I will add that at least into the seventies it was common only to get a title opinion from a local attorney who had examined the title. The local bank or savings and loan association would rely upon this opinion in making and securing their loan. I did quite a few title opinions during that time. Then one day I get a call from some bank in New York City saying that they were considering making a loan and they didn't know my work and how much malpractice insurance did I carry. As financing of loans spread beyond the borders of a local community there was a need to show the far away lender that they had a first lien security interest in the property and if not there was at least some financially reliable institution willing to stand behind that judgment. That is when title insurance became almost a necessity for for financing property. (In fact in the few states that I follow, state banking laws require either title insurance or some form of equally expense title assurance and for a loan to be sold to Fannie Mae or Freddie Mac it must be insured - with a couple small exceptions.) So it has been because we have moved the financial market (for home loans) from the local community to world wide where ever that title insurance is pretty well mandated. As to the Canadian practice (as well as many other countries) there are completely different laws for creating, perfecting, recording of liens and different forms of assurances that derive from them. For the consumer the the questions becomes "If I have a title claim against my property can I collect from the seller of the property, the lawyer or other person who examined the title or a solvent title insurance company?" And it the money I am paying or saving worth the risk? I agree with the article stating that title insurance was worth the cost I will add that at least into the seventies it was common only to get a title opinion from a local attorney who had examined the title. The local bank or savings and loan association would rely upon this opinion in making and securing their loan. I did quite a few title opinions during that time. Then one day I get a call from some bank in New York City saying that they were considering making a loan and they didn’t know my work and how much malpractice insurance did I carry. As financing of loans spread beyond the borders of a local community there was a need to show the far away lender that they had a first lien security interest in the property and if not there was at least some financially reliable institution willing to stand behind that judgment. That is when title insurance became almost a necessity for for financing property. (In fact in the few states that I follow, state banking laws require either title insurance or some form of equally expense title assurance and for a loan to be sold to Fannie Mae or Freddie Mac it must be insured – with a couple small exceptions.)

So it has been because we have moved the financial market (for home loans) from the local community to world wide where ever that title insurance is pretty well mandated.

As to the Canadian practice (as well as many other countries) there are completely different laws for creating, perfecting, recording of liens and different forms of assurances that derive from them.

For the consumer the the questions becomes “If I have a title claim against my property can I collect from the seller of the property, the lawyer or other person who examined the title or a solvent title insurance company?” And it the money I am paying or saving worth the risk?

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