lawyer/title company question - Posted by GL

Posted by Rob FL on December 17, 1999 at 10:09:13:

Title insurance just like any other insurance pays money to the insured person if there is a claim. A claim would be a defect in the title, missed liens, lack of access to a road, foregeries, fraud, etc.

Attorney’s title opinions used to be widespread in the U.S. until the 1950s. The only problem is, what happens if the attorney missed a $500,000 lien on the hotel you bought. Do you really think he could pay to fix it? What happened if the attorney died or went bankrupt, who would pay then? Also most attorneys title opinions have “abstracters liability.” This means that if something outside the chain of title occurs the attorney is off the hook. If there was a forged deed, an unrecorded lien, or mortgage fraud, the buyer would not be protected by the abstracters liablity.

For more info here are some title insurance websites:

lawyer/title company question - Posted by GL

Posted by GL on December 16, 1999 at 12:39:40:

Can anyone explain what a title company does and what title insurance covers? Here in Ontario Canada there is no such thing as a title company and they are starting to introduce title insurance.

All real estate transactions are handled by lawyers. They hire someone to search the title and handle all the technical stuff and paperwork. This costs about 2% of the value of the property. If anything goes wrong with the title and it is the lawyer’s fault he is supposed to come good for it.

How do they do it where you are?