The New York herald., 1922-05-28

Some reasons for the unpopularity
of title companies in New York and
Pennsylvania were taken up by Cyril
II. Burdett, vice-president of the New
York Title & Mortgage Company. In an
address on 1.-THE Future of Title Insur-
ance and It's Possibilities" delivered last
Tuesday in Pittsburgh. Pa. at the an
nual convention of the Pennsylvania Title
Association. After declaring that title
insurance to protect property is the only
safe plan for home owners or builders
NJ. Burdett sid:
"I don't know how 1t is in Pennsyl-
vania, but in New York the title COM
panies are not as popular as they might
be. partly due to the fact that they are
among the largest lenders on bond and
mortgage and have to refuse to make
many loans because they do not agree
with the owners in their frequent over
valuation of their props rites The
prejudice is also due to the fact that the
seller loses his sale and profits, the pur-
chaser a desirable investment. the bro
ker his commission and the lender an
opportunity to invest his funds when
the title company refuses to pass the
title. All these classes together make
up very important element In the
community and a personal disappoint-
ment Is apt to prejudice them In their
attitude toward title companies.
"The impatience of the public breaks
out at many points. common manifes-
tation OF II being In a demand for the
Torrens law-an infiiction which you or
Pennsylvania thus far have escaped.
What they are really doing in their Tor
rens laws is not the supplanting OF the
title insurance companies but setting up
short statutes of limitation in an at
tempt to destroy the rights which the
statutes of our States have given to
those who are In "a position to assert
claims against persons in possession or
real property. IL our codes had only
set up these short statutes of limitation
independently of the Torrens laws title
companies could easily pass more titles
without any trouble.
But l am not going TO say much
a bout the Torrens law. as to which YOU
have had a full discussion. this after
noon. It's popularity i'm New York IL
demonstrated by the fact that although
we have had it upon our statute books
| for thirteen years there are very few. II
any, registrations in the counties out
side Of New York city. Long Island anu
Buffalo. In the FIVE counties which COM
tions. down to the present time. num-
ber 217.
Another symptom OF this impatience
on the part Of the public with methods
/ employed by the title companies was
| manifested about five years ago in the
action OF the Federal Farm Loan Bu-
reau when they called upon title COM
panies to furnish policies based upon
examinations by local attorneys cover
ing only the period for which the statute
of limitations had not run in each State.
] secured a conference with members of
the Farm Loan Bureau and protested
against this seeming revolution In title
Insurance methods-the examination in
short period for instance, in Ken
lucky. for only eight years. But the
members of the board were inexorable.
1T Is interesting to compare our losses
with those paid by fire Insurance COM
panies. which average about 80 per cent.
OF the premiums received. with expenses
Of about 35 per cent. Our expenses av-
erage from so per cent. to IS per cent.
"Thc most frequent losses which tltla
companies have TO meet arise where pol
icies insure marketability OF title. and
those of us who are familiar with the
business i'm large cities especially
where there Is more than one tit c COM
pany-find the greatest trouble arises
from the questioning of titles upon re-
examination by one or other - orr com.
petitors. or by the regular practitioner.
resulting sometimes In considerable ex-
penditrres in order to remove doubts as
TO the validity Of title. II Is very seldom
that any title company has direct
attack upon the title 10 the premises in
sured. The experience of all OF us, I,
think. will show that our most frequent
losses. although not necessarily the larg-
est losses. arise by reason of oversights
and omissions In our own offices
"It might be claimed that all this Is
nm argument against the need Of title