, 1890-09-19
RISKS IN TITLE INSURANCE

~ 2" $3.50
How a Few Losses HRvs shArPened the
wits of ssarehers-
The prominence which real estate
title guarantee companies have reached
in matters affecting searches has given
rise to a good deal Of curiosity among
real estate dealers regarding the posi-
BILE losses that such companies may
have had t o sustain through assurances
of title which they have issued. These
companies have been in existence only
a few years, but in that time, by reason
of methods of economy and a sort of
cooperative system, they have TAI
aged to divert a great deal Of the bust
ness which was formerly monoPolized
by lawyers, and the gentlemen who
have thus seen their revenues dwin-
ding are naturally prone to throw
some suspicion upon the results, II not
upon the methods, Of business employ
ed by the guarantee companies.
Before the guarantee companies came
into existence the amount of money
spent by purchasers of property in
searches was something almost fabu
lous in this city. 1t is said TO have ag
gregated during certain years as much
as g, 600. 900, and there are reports
more or less Trustworthy that in some
years it has greatly exceeded that sum.
Most of the money thus expended went
into the pockets OF lawyers. How
much may have been diverted from
this course it is not easy e calculate,
1Rt fr,a, VIa Fa.. tl.N ..,-.~.I ts4I.H
guarantee companies seem to be doing
n prosperous business it is n fair infer
ence, perhaps, that they are enjoying
n good share of the which the
lawyers formerly had all to themselves.
Ii is of course little short of i'm
possible to get the officers of these com
panies to admit that they have ever
made mistakes. but some OF them are
sensible enough to see hat IL would be
folly to claim to be infalliblc, and in
conversations recently they have ad-
mitted that il has been necessary for
them in some cases 10 buy of claimants
to property after they have passed title
upon it and insured the title. There
was one case in Broadway in which a
claimant insisted upon Sl5, 900 in order
TO satisfy his rights in certain property,
but he finally compromised and signed
a quit claim deed for 81, ZOO. Quite u
number of cases have come to the at
tention of real estate dealers in which
the title companies were called upon to
pay a few hundred dollars at a time,
but this Broadway case is the only one
which has involved any considerable
amount, according to common report
and according TO the admission of the
officers of the guarantee companies.
In every office of these companies
there is no hesitation in saying that in
the course OF their searches they fire.
quently come across flaws in titles, and
that they are obliged while acting as
agents for buyers or sellers TO clear up
such doubt as may thus be thrown
upon titles TO property. These admis-
sions are Of course in no way to their
discredit, but are rather complimentary
to their skill in detecting clouds upon
titles which had passed unnet.C.d in
former searches which had been con
Quoted by lawyers Privately engaged.
1t is positively claimed by the officers of
all h Guarantee companies that in the
seaIanes they have made, involving
values to the amount of many millions,
the mistakes for which they are ac-
countable have not amounted alto
gether to S25. 900. Considering the
vast amount of business that they have
done, this sun may DO considered very
small, ard the fact must be unques-
toned that with the experience that
they have gathered in searching titles
they have equipped themselves so well
as ferrets that a flaw in n title must be
very well concealed indeed to escape
their notice.-New York Times.