Daily Yellowstone journal., 1890-09-02
RISKS IN TITLE INSURANCE.
How a Few Losse, Have s~harpencd the
Wits of searclers.

NOW " rev tfHsfs baNs NhaFpth'n tns
Wits of searchers.
The prominence which real estate
title guarantee companies have reached
In matters affecting searches has given
rise Ia = good deal of curiosity among
real estate dealers regarding the posi-
BILE losses that such companies may
have had ia 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 81
cooperative system, they have man.
aged TO divert a great deal of the busi-
ness which WAS formerly monopolized
by lawyers. and the gentlemen who
have thus q their revenues dwin.
ding are naturally prone To throw
some suspicion upon the results, il not
upon the methods, of business employ
ed by the guarantee companies.
Before the guarantee companies came
into existence the mount Of money
spent by purchasers Of property in
searches was something almost fabu.
lous in this city. IL Is said Ia have az.
gregated during certain years as much
as -. 900, 900. ard there are reports
more or less Trustworthy that in some
years it has greatly exceeded that snm.
Most IF the money thus expended went
into the pockets Of lawyers. How
much may have been diverted from
this course il is not easy 10 calculate,
but from the fact that several title
guarantee companies seem Ia be doing
a prosperous business il is n fair infer
ence, perhaps, that they are enjoying
agool share If the revenues which the
lawyers formerly had all "a themselves.
Ii is Of course little short Of i'm.
possible Ia get the officers Of these com
panies to admit that they have ever
made mistakes, but some of them are
sensible enough to see that il would be
folly To claim 20 be infallible, and in
conversations recently they have adj
mitted That il has been necessary for
them Ia sUlne cnscs TO buy oil claimants
10 property after they lmve passed title
upon it and insured the title. There
'wa m ease in Broadway in which a
claimant insisted upon SIS, 900 ia order
to satisfy his rights in certain property,
but he finally compromised and signed
a quit claim deed for $1,000. Quite "A
number of eases have come 10 the at.
tention of real estate delicrs in which
the title companies were called upon TO
pay n few hundred dollars AT a time,
but this Broadway case is the only one
which has involved any considerable
amount, according TO comInon report
and according 10 the admission 81 the
officers Of the guarantee companies.
In every Office If 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 ms
agents for buyers ar sellers o. clear up
such doubt rs may thus be thrown
upon titles % 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 unnoticed in
former searches which had been con
Quoted by lawyers privately engaged.
Il is positively claimed by the officers u
ell the guarantee companies that in the
searches they have made. involving
values 10 the amount of many millions,
the mistakes for which they are ac-
eountable have not amounted alto
gether b. sl5, 900 Considering the
vast amount VI business that they have
done, this sum may be 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 30 well
~ ferrets that a flaw Ia a title must be
very well concealed indeed 10 escape
their notice. New York Tee-s