Los Angeles herald., 1908-11-15
INsURING PERFECT TITLES
is A CARDINAL QUESTION

In another column stress was laid
upon the Importance of the title to
real estate. Desirability Of location,
future increase in value, even present
income from a piece of land, whether
1t be a city lot with costly buildings
upon it or a chicken ranch in the des-
ert, are insignificant details as COM
pared with the question: Does payment
of the purchase price actually secure
permanent possession to the pur-
chaser?
In California, where some of the land
titles used to be of a rather dubious
character, and probably because OF
that former condition, exceptional safe
guards are now thrown around them,
and especially is this the case in South
ern California. The old Spanish
grants, upon which original titles were
based, were grandly Indifferent as to
detail. The boundaries of thousands Of
acres were most vaguely described by
metes and bounds. And much pains
and expense were incurred before the
present satisfactory system was
evolved and descriptions were reduced
to positive terms.
The law Of this state requires that
every instrument in writing conveying
real estate, or whereby the title may
be effected, shall be recorded in the
county in which the property is stu
ated. Such record Is in law a notice
to all persons; and any person taki1g
title is assumed to have knowledge Of
all such records affecting his property.
There are great number of reasons
why title may be defective. Conse-
quently, a long and involved search of
the title through all the changes it may
have undergone is necessary; and such
a search must, of course, be made by
fhororrerT,Ivy 10 n %
worth anything. Even then some OBJ
scure defect may escape that lawyers
attention. Or his opinion on some tech
nical point may be faulty.
For Expert Opinions
In order to supply the demand for
the most thorough examination poSSI-
BILE and for the expert opinions of more
than one man upon titles, corporations
have been organized and have success
fully operated in Los Angeles for many
years which issue certificates Of title
and which further, if desired, issue pol
ieies insuring against loss or ;amage
through defects in title, and guaran-
teeing defense against any attack upon
a title thus insured. This system has
been of the utmost value, and while 1t
depends of course upon the strength Of
the title company, there has been no
question upon the latter score In the
case of the companies which are util-
lied by such real estate men as the
members OF the realty board. The prin-
cipal title companies employ skilled
searchers and finally submit the title
for re-examinatlon by attorneys con-
nected with their legal department.
They necessarily attain thOroughness
and expertness which surpasses that
of any private individual.
While the above system does not
r. baun obtained q fOOthOl6 in the
northern part Of the state, the former
intricacy of titles has resulted in such
scrutiny in the past and in the train
ing Of cerain lawyers who make a
speciality of this practice, htat It is
but seldom that abstracts are found to
be faulty, and the most skilled search
ers have organized corporations which
make a business Of furnishing alb
stracts. The title certificate system as
used here, however, is unsurpassed.
Whether it will be ultimately suppressed
ed by the Torrens registration system,
which has been legalfzed in California,
is a question.
Advises Torrens System
The Torrens system is warmly adyo-
Gated in the north, and provided that
a sufficient guaranty fund is supplied
in connection with it, its superiority
to the abstract system is apparently
un0lSputed Dy real estate men. LHe
San Francisco and Fresno realty
boards have unqualifiedly indorsed 1t.
But further legislation is required ana
may be obtainable at the forthcoming
session Of the legislature before it is
likely to be taken advantage If in
California. Its principal advantage
over present conditions in Los Angeles
would be one of reduction of expense,
according to its advocates, that being
the only point upon which the title
companies are open to criticism, SO rar