Saturday, January 19, 2013

Do Fidelity National Title Company escrow officers sell the title insurance??????

There are so many things I do not understand about what happened - and I had hoped to come to a better understanding of how this entire mess happened in the first place.

Per the Fidelity website:

"In order to determine the status of title, Fidelity National Title conducts a diligent search of the public records for those documents associated with the property. Fidelity National Title then examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property." 

And yet - as will be shown later.  No documents seem to exist from this "diligent search of the public records."  And it seems that four "diligent" searches should have been done:

1) When the property was originally purchased.
2) When the property was refinanced and I took sole ownership of the property.
3) When Craig Donner did the search when the problem arose and discovered the easements were not valid.
4) Then about a year into the claim another search was done and it then appeared that the easements might be valid - although I was never told.

Because of all of this - I felt that finding out what they actually do in issuing title insurance is important.

Another critical question I have is who actually "sells" the title insurance.  Until the lawsuit I did not realize that it was too different "companies" that handle the escrow, issues the prelim and prepares the Grant Deed and the title insurance company.  When one opens escrow with Fidelity National Title Company it appears that the insurance is automatically issued by Fidelity National Title Insurance Company.  At least I was never asked for myself or any of my clients - would I like the title insurance delivered  by another company.  So does that make the escrow officer the salesperson for the title insurance??????  Do they get a commission or get paid for selling the title insurance???

I do not know but personally I think these are very good questions.