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.
the corporate structure is FTIC is part of FNTG which is a wholly owned subsidiary of FNF
ReplyDeleteThank you for your response. I did after searching the web figure this out although as a real estate broker who referred dozens of clients to Fidelity National Title - I confess I did not understand the corporate structure. As a matter of fact what got me investigating how it was set up was when in one of the responses Edward Kunnes, the attorney for Fidelity wrote that the Defendant had no office in Napa California - which when I first read it I thought he really meant there was no office and I was lying.
ReplyDeleteSo my basic question still remains though. Who actually sold me and other clients the title insurance for Fidelity National Title Insurance Company???? I never met with anyone that I understood to be an agent of that company nor to my knowledge did any of my clients. The insurance premium just somehow became a part of the final settlement documents - I am amazed that I honestly do not know nor understand how this happens.
It works like this. Escrow officers are considered the settlement location. They handle the money and the clients. sales people bring in the clients, their basic function is to peddle the service to real estate agency and the like. Title is were the search and exam happens. The real property is searched and examined per public record and based in those findings there is a policy of insurance issued covering those issued. FNT is in the business of title insurance, sometimes you have escrow officers that don't have their own title agency and will have to outsource to a title agency for underwriting. Fidelity is so big they have their own escrow division.
ReplyDeleteThank you again - but this raises more questions. I certainly understood the escrow office as the location that handled the settlement impartially for both the buyer and the seller including the money and the clients. But you then say that "sales people bring in the clients." So is what you are saying then that as a real estate broker I was the "sales" person?? My interest as a broker in using the Sonoma Office of Fidelity National Title was the exceptional service I received from the escrow officers. When either I or my clients had title questions I first went to the escrow officer (even with the initial problem with the easements) who then referred me to the title officer to answer the questions.
ReplyDeleteSo was I then the "sales" person for Fidelity National Title insurance? (I, of course, never received a commission for this sale.) Could I or my clients have had the escrow handled by Fidelity and the insurance by say First American?
And your understanding also seems to be that the real property is searched and examined per public record. In my case three times this was "done" and yet no one noticed that I was deeded four parcels that were not in the seller's grant deed?? And then I was told they were not valid but insured then apparently they were valid but not insured and finally that they were insured but that the value was $0.
You appear to have a lot of knowledge - perhaps you could specifically answer these questions. Thank you again for your assistance.
Fnt houses sales people, you as a client were just using the #1 marketing strategy - word of mouth. As a realtor I'm sure you have made a living off that kind of "sales"
ReplyDeleteAll title companies use a practice called base forward. If there is a full insurance issued on a piece of property then the title employees are told to trust your base and move forward from that date. This of course can cause errors and it takes extra diligence and someone good at there job their job to catch any errors. Unfortunately it's cheaper to hire the unskilled.
The original problem with your property and the easement magically appearing in your legal it's a mystery however to me as that is were they started. Who knows why the examiner pit them in there.
Okay - so I as the client was just the #1 marketing strategy - I buy that totally as I recommended Fidelity highly for escrow to all of my clients when I was a real estate broker.
ReplyDeleteBut you say "Fnt houses sales people". What position do they hold at Fidelity National Title?????????? The only people I actually dealt with was my escrow officer and the title officer - were one of them the "sales" person? Who is the actual person who sold me the title insurance?
And I had never heard of "base forward" but that certainly makes sense. And LOL - I am glad to hear that the easement magically appearing is a mystery to someone besides me. Maybe I'm not crazy!?!?!
Hi Ann,
DeleteI am agree with your words. Really very nice post. Title Search Services and Title Plant
Thank you John. I am now in touch with others who are currently in legal action with Fidelity National Title. It seems that Fidelity National Title is quite professional on the front end with the escrow services but they are not responsive when they either have to defend your title or pay a claim for an error that they make.
DeleteSales people usually hit up lenders. After all, lenders require a lenders policy. Title IS title insurance. Don't think if it as car insurance were you have agents. Although title insurance is not required to buy or refinance (private lenders only) it is encourage to protect you, usually more in the case of fraud. Title insurance go hand in hand with the phrase "acceptable risk" and realize that most policies they will never have to pay out on. I think it's somewhere around 5% is what they do.
ReplyDeleteSo sales is separate than escrow is separate than title in their job functions but is all a common goal. Sales say to lenders, "hey use Fnf or Fatco this is why." Realtors get buyers/Sellers. Buyer gets loan finds house, lender or agent opens escrow, escrow request title policy and a prelim is created. House closed and policy us issued. "
Well I find this fascinating - as I knew that lenders required a lender's policy but at least here in Northern California the lender had absolutely nothing to do with choosing the Escrow and Title Company. So if the sales people (whoever they are within the Fidelity structure) - hits up lenders I was completely unaware of it.
ReplyDeleteAs a real estate agent/broker I did procure the buyer and/or seller and typically here it is the buyer normally with the assistance of their agent who chooses the escrow and title company and the agent opens the escrow.
So does this then make me the "sales person"? Or does that responsibility fall on the escrow officer who is there to answer the questions for the buyer on the Prelim and on what title insurance is and why one should purchase it? Doesn't it make the escrow officer the "sales person"?
Ok. So as far as my understanding the sales team somehow works with realtors. Maybe not you, but I know that the customer service department does things like Farm reports, mailing labels and use to do pre-Foreclosure list when it was still legal. I imagine that some realtors just pick an escrow, like the experience, and then reuse then not ever realizing there is a whole other side to the business. Most EO's wouldn't know an easement from a hole in the ground. It's a natural case of no training and it's "not my job"
ReplyDeleteTitle officers are the brains but the company keeps them like a dirty secret. Off in a title plant answering questions for escrow.
Now this is starting to make sense to me from my experience.
ReplyDeleteThere was a "customer service" person who did things like come around to various real estate offices bringing things like desk calenders, folders, post-a-notes, etc. And I was a "Fidelity Gold Client" and received gifts like a key chain and a business card case.
And funny your comment "not my job." When I called my escrow officer right after the Settlement Conference and asked her how she could work for a company that claims to insure people's real estate investment - she basically said that the claims were "not her job."
And the title officers - well we did try to find out how and what research was done. Three times a 'diligent' search was performed by title and the easements were included as parcels, then Craig Donner determined they were not the sellers to convey, then a year later two other title officers whose names are escaping me at the moment decided they were valid. But there does not seem to be any documents other than the public records that were provided to me by the Title Officer prior to my purchasing the property when I requested clarification.
Thank you so much for all of your comments. They are very helpful.