I was supposed to be helping my sellers close on their property in Roslindale today but the closing has been delayed because there is supposedly a defect in the property’s chain of title. These sellers weren’t aware of any defect in their property’s title and they’ve owned the property since 2003. They’ve even refinanced the property in 2005! Why was this supposed title defect never discovered when they bought it in 2003 or again when they refinanced the property in 2005?! These sellers are extremely lucky because they opted to purchase an owners title insurance policy when they purchased the property back in 2003 so they supposedly won’t have to pay any fees out of pocket for any attorneys or incur any potential losses in relation to the defective title.
The system of title insurance really makes me angry. The then buyers’ bank hired an attorney back in 2003 to close the loan for these buyers and that closing attorney hired a title examiner, they’re sometimes attorneys, to examine the title. That title examiner missed an ostensibly glaring title defect. So the then buyers, the now sellers, were able to buy the property without any worries related to the title until this title defect became known when the new closing attorney’s title examiner examined the title for the new bank within the last week or so. That’s another related issue. Why are these titles only examined so close to the actual closing date? They should really be examined as soon as the purchase and sale agreement is signed but that’s another fight for another day. What makes me most angry is that closing attorneys in Massachusetts also act as title insurance agents.
Think about the logic for a second. Aren’t closing attorneys motivated to keep the carousel of titles murky in order to profit from these title insurance policies?! These buyers are buying owners title insurance policies from the very attorneys that are charged with keeping these property titles in order. Where’s the incentive to do just that when these title insurance companies are paying them these commissions?!
It seems that every one of my closings these days are mired in title issues. The system needs to be fixed. Any comments on how the title insurance system can be fixed?