The herald., 1896-01-31
ABOUT ABSTRACTS OF TITLE
Some OF the Weak Points in Many of
the Documents
A Bank Cashier Gives a Patron Some Good
Advice That is of General Interest
to the Public

The following conversation took place a
few days ago between the cashier of a
prominent banking house of the city and
a lady patron. Ordinarily such matters
are of no particular moment, but as the
subject of the conversation was of a
character to be of interest and importance
20 a large number of The HERALD's read
ers it is given.
The lady patron had called upon the
cashier for his opinion on an abstract of
title submitted to her for approval, the
said abstract affecting title to some land
which she was about to become possessed
of through trade. After carefully looking
through the document the cashier was
heard to remark:
~ have no desire, madam, to call in o
question tho interest of the company issu-
ing this O. iticate, but must say to you
that CO 81 .sr the instrument worthless as
either a certificate or guarantee OF the
ii le to the property referred to, and ad-
wise you to make no investment without
some further evidence of n perfect title to
the property"
"The company which issued the certifi-
cate is perfectly reliable, is it not?' in
quired the patron.
"Yes, thoroughly so; but an now pass
ing upon this document, and not upon the
reliability of the company from which it
issusd.'
Wont you be kind enough to point out
its defects? am not satisfied wi h il my
self, but ain unable to tell just where it is
weak and faulty
''In the first place, madame,' said the
cashier, ''it is "a mixed certflcate; in ether
words a portion of it is the work of one
company and part the work of another,
t.;, do,
it, unless the company responsible for the
last portion of the abstract guarantees that
of the former. and then, SO far as L am con-
cerned, it would not be acceptable to me
on a loan. But this is not all. This docu-
ment of yours is but certified and not a
certified and guaranteed certificate. The
abstract companies OF Los Angeles issue
both kinds. This bank will loan only on a
guaranteed certificate of tile, and we are
just as particular as to the company issu-
ing the abstract. And there is still another
point, now that l am upon the subject, that
[ will call your attention to; but first let
me ask you if you applied for this abstract
yourself?"
mo, sir; I did not. The agent conduct
ing the business secured it,"
II inferred as much from the instrument
itself, and l have only asked the question
to impress upon your mind the Importance
, of the point l desire to bring to your atten-
"
lection of the purchaser and not the vendor.
1t is therefore essential to the purchasers
interest that the certificate show upon it's
face that it has been made at the request
of tho party to whom the transfer OF the
property is TO be made"
"Why, how can that be. What effect
| would that endorsement upon the certifi-
cate have upon its value?"
"Just this madame. that if any contin-
gency should arise after you have become
possessed of the property, wherein the
title would become involved, and it's certi-
ficate shows that it had been brought down
at the request of the agent, or some other
party besides yourself, you have no re-
course against the company issuing it eX-
cept through the person named as having
| applied for it, and at whose re.
quest 1t was made. This fact is
3, not known by the public to any
| great extent, but every person who is deal
| ing in real estate should know it, for there
! is no telling how much may some time be-
come involved through just such an over
| sight. In buying property the purchaser
should insist upon applying for the abb
stract in his or her own name, with the un.
derstanding, of course, that the selling
party shall pay for it. This is the only
safe course TO pursue to guarantee your
/ title, and trust you will always follow our
advice on the matter. if you desire to pre-
vent trouble for yourself
With this opinion, the lady departed and
called upon the manager of an abstract
company, who verified what the cashier