Aug 3, 2023Liked by Pat Garofalo

As someone who spent over ten years in RE and has worked in multiple states from a real estate transaction perspective - I fully attest that it Title Insurance is one of the biggest scams out. The extent you have more complicated transaction of pieces of property that involve unclear borders it can be beneficial but those cases are few are far between.

I wasn't aware of Iowa's example but one that should be echoed by other state legislatures. Lawmakers who tackled it as a one form of making housing more affordable would find receptivity and to the extent they wanted to make it even more popular they could start by focusing only single-family homes for the state insurance program and let commercial real estate continue to pay for private insurance

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Great info. Passed it on to our U.S. Congressman, Adrian Smith.

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Aug 2, 2023Liked by Pat Garofalo

Is there title insurance in Vermont? My recollection is that I hired a lawyer, he checked the string of owners of the property I was buying, the seller gave me a warranty deed and that was it. Perhaps there have been changes; that was a while ago.

I think there is a related "scam", or perhaps it is the same one. A designated company keeps track of each sale and records the string of sales that occur for each property. Then they charge you what a lawyer would to guarantee the title, even though all they have done is add the current sale to their list of sales. One of the problems seems to be that the company that does this is a monopoly. There is no other competing place to go to.

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I have to disagree with tone and lumping of all states into 1 article. I spent 10 years in the title industry in Texas and the Title Insurance is highly regulated by the State Board of Insurance. They have had an anti-steering policy even before the CFPB started monitoring AND Title Companies are regulated on Kick Backs or Joint Marketing with Real Estate Agents, including the giving of gifts.

With that being said, many purchasers do not know where to go for Title Insurance or what options they have, but the CFPB has flagged Title Insurance as a shoppable line item. I do have to agree that some instances Title Insurance shouldn't be required, such as a refinance or home equity, considering a policy for issued for the purchase, so it should only be an updated rider at a discounted price.

In Texas Title Policy and Title Company fees are set by the state and the legal documents are promulgated, so the legal documents are even dictated by the state, including the verbiage.

The other item I would like to note, why not go after the companies advertising the "Title Monitoring" companies like "Life Lock" that are advertising. If Banks and Lenders are requiring updated Title Policies, then this service would not be required.

How much of the fees in Iowa have been paid out or how many property owner lost their home from not having proper title documentation from a probate or divorce.

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