Mandrien Consulting Group Discussion On The History of Title Insurance
Mandrien Consulting Group research reveals that the interest in title insurance began because of the fact that common ways of dealing with real property did not offer a safe vehicle for the people involved in real property transactions. Over a century ago, professionals known as conveyancers transferred titles for property and handled all parts of the process. The conveyancer performed a title search to find out the seller’s ownership rights along with other liens or other terms that might correspond with the property and could offer a signed abstract or overview of the title’s status of the title. Even though the conveyancer is not referred to as a lawyer, the person was considered an expert on real estate law. This type of insurance can be traced back to the restricted protection that the work of this conveyancer can give to a person who buys real property.
In Pennsylvania, the Watson v. Muirhead (57 Pa. 161) case was filed in 1868. That case involved Muirhead, who was a conveyancer that searched a title for Watson and provided an abstract for the person who bought a piece of real property. After speaking with an attorney, Muirhead decided to ignore some recorded judgments and to declare that the title was valid and unencumbered. On the foundation of the abstract, Watson carried through with the purchase, but was given and required to fulfill the liens that Muirhead had decided were not burdens to the title. Watson sued Muirhead to replenish his losses, but the Pennsylvania Supreme Court made a ruling that the conveyancer committed no negligence and threw out the case. Watson was an innocent buyer who, as a buyer who had gone through financial harm because of the title’s encumbrances, had no other alternative.
Mandrien Consulting Group is a company that has studied the history of and understands the need brought about by the Watson v. Muirhead ruling, which showed that the then current conveyancing system did not give total assurance to buyers of real property that they would be secure in their ownership. As an effect of that decision, the Pennsylvania state legislature passed an act that was meant to incorporate and regulate title insurance companies. In 1876, the first title company was started in Philadelphia. Mandrien Consulting Group specializes in consulting with respect to this insurance known now as title insurance and deals with the issues brought about because of the Watson v. Muirhead case. This insurance offers liability without negligence , financial security through a decreased insolvency risk, and the assumption of risks above those revealed in the public records for which the abstractor was not responsible.
Mandrien Consulting Group knows very well that the title insurance business has expanded to its current state ever since the late 1800s. Now it is a very important function for many real estate transactions in the U.S. The services offered by the title insurers may differ from one part of the country to another as reflective of the various laws, practices and processes of many states and counties all over the nation. But the main objective of the services is the same which is to help all of the individuals in real estate transactions by making sure that the transfer of real estate can be influenced with the greatest degree of safety and efficiency.
Mandrien Consulting Group is proud to sponsor this blog on title insurance. We will from time to time write about topical and interesting title insurance concepts. If you want to talk title, call Mandrien Consulting Group at 917.338.4222.