Utah Real Estate News Clips - Utah Real Estate

Residential title problems on the rise
June 12, 2006

What do you tell clients who ask why they need title insurance? Maybe you respond by saying that it’s required by mortgage lenders. But here’s another good reason to buy title insurance: Title problems were found in 36 percent — about one third — of all residential real estate transactions, according to a 2005 member survey by the American Land Title Association. That’s quite a bit higher than the 25 percent reported in 2000.

The most frequent curative actions last year were obtaining releases and pay-offs for discovered liens, such as prior or existing first or second mortgages, unpaid child and spousal support, outstanding taxes and other judgments against the property, according to ALTA President Rande Yeager. The next most common curative action, according to Yeager, was obtaining releases for assignment on deeds of trust and mortgages, followed closely by recording errors of names, addresses or legal descriptions of the property.

“The booming real estate market over the last several years has increased the number of transactions significantly, which means more title problems are found,” Yeager said in a prepared statement. “This clearly demonstrates the importance of a professional title search in all real estate transactions.”

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