St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-09-12
TO INSURE LAND TITLES.
A New System OF Perfecting the Titles
to Real Estate.
A Title Insurance Company That
Saves Time and Money.


Saves Time and Money.
If the same success and general favor on
the part of the property holders meets the
st. Paul Real Estate and Title Insurance
company that has met similar companies in
other cities there will be a general change
in the methods of perfecting
and examining titles to real
estate in this city. The company, recently
organized, has hxed its capital stock at
$500, 600. to be issued in shares of 500
each. and the books have been opened for
subscriptions. While the business of the
company has already been given in
general way, as to guarantee against loss
by reason of defective titles, liens or in
cumbrances. there are many facts of the
business of interest 10 property holders
which might be given more in detail. AS
the name implies. it is an insurance COM
panv, issuing policies, and indemnifying
holders when losses are incurred under the
terms of these policies. The policy of the
company takes the place of the abstract
and the attorneys opinion usually requiredin
making a loan, or in the sale of property,
and does away with the tedious processes
of examinations and other steps. fire.
quently necessary in the removal of defects
and supplying of omissions. The company
will have in its employ
A SET OF EXPERTS
in the examination of titles and all matters
connected with the transfer Of property.
1t is the company's business to make alb
stractS examine titles, and stralghten out
all the crooked technicalities in which titles
may be involved. A complete set of alb
stract books will be kept as part OF the
business, these books containing complete
abstract of every piece of real estate in
Ramsey county Title policies issued by
the company will be absolute guarantees,
backed by wealthy corporation, and any
loss afterward resulting from any defect
in the insured title is paid by the company.
The borrower or purchaser takes from
the company its policy, which guarantees
the title in the amount and for the time of
the loan, or for the value of the property
for all time. and pays therefor certain
fixed premium, which, in most cases, is
less than the cost Of an abstract and the
opinion of an attorney, While the
excess of cost, if any, is more than Offset
by the saving of time and annoyance. The
cost of such policy is fixed and knowb
when the application is made. The pur-
chaser of a piece of real estate. for instance,
instead of paying for big roll of papers
foeming an abstract and then paying an at
torney to examine it and give an opinion as
to its correctness and the perfection of
title. simply obtains title of policy of in
surance. while the seller instead of having
to furnish an abstract or wait for the exam
ination of title by the purchaser, is saved
much time and annoyance. Both parties
are therefore enabled to cOnsummate the
bargain Immediately. The present system
of examining titles is not only tedious and
unsatisfactory because Of possible clerical
errors in indexes and lurking errors in con-
veyanceS, but there is
GREAT DANGER OF FRAUD.
Heavy losses have often resulted from
these frauds which may be by reason of
forged conveyance, false personiiicatiOn,
a concealed dover right. incorrect informa-
ton as to heirs. intestacy or any other
material fact and neither official or attOr-
new NAV be responsible for failure to de-
tect flaw arising from any such cause, and
after the most careful examination there
are still many lOOphOleS. This little in
surance company, at the head of which are
such men of solid financial standing, COM
pletely wipes out all danger from any of
these defects. Instead of the simple opin-
ion of an attorney the purchaser or lender
has an absolute guarantee. and if the title is
thereafter questioned the company is the
party to stand the loss if any result. Of
course. titles are examined by the company
in as careful exhaustive and skillful man
ner as professional experts can do it, as
this is of vital Importance to the
company. and the policy then issued binds
the company. iu case Of loss. to pay the
loss up to the amount of the policy. A
title once guaranteed, there will be reissues
of the policy to subsequent purchasers or
mortgages, at a less rate. The saving of
time. as we'll as the saving of money, is a
great recommendation to any man who has
been annoyed with the delays necessary to
complete transfers or loans on real estate
There are also special features of the COM
pany's work requiring special deposits
such as insuIing against possible mechanics
liens, the risk of decedents debts or the
satisfaction of an old mortgage. The COM
pany will also,
FOR A SPECIAL FEE,
| guarantee against any delinquent taxes
| tax titles. etc, which will be of special
value to non-resiGents owning property
here. The company will also bring suits
| to quiet title or reissue policies to the
/
| The advantages of title insurance have
| been thoroughly demonstrated in nearly all
| the large cities of the East, where the
system has been in operation for
several years, having originated in Phila-
delphia in 1879. There the public has
come to prefer guarantee policy which it
| can understand to huge abstract OF title
which it cannot understand. The COM
| panes are an established and complete sue
cess and equally satisfactory to the public
and the stockholders. They have for years
done a profitable and constantly increasing
business Wherever organized they are not
only popular and of great public advantage,
| but the stock is considered first class in
vestment, many of the companies paying
large dividends and the capital stock selling
at large premium. which makes
the business profitable both to insured
and to insurer. In cities where title insur-
ance companies exist, loan and trust COM
panies, insurance companies, safe deposit
companies and capitalists have come to
rely on them require title
policy before making a loan, and
they regard the policy as absolute security.
far more so than the abstract of title under
the old plan. In fact, in Philadelphia,
New York, Brooklyn, Boston, Baltimore
and other cities, so great is the confidence
in these guarantees that scarcely any prop
erty will be purchased or mortgage taken
without this title insurance. A good slice
| of the stock of the st. Paul company has
| been taken. Messrs. Ferdinand Willius,
Daniel K. Noyes and E. W. Peet are COM
mittee in charge of the preliminaries of the
| business.