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Re: Property profiles are dangerous

Posted by Ward-CA- on August 08, 2001 at 10:10 PM

In Reply to: Property Profiles posted by Troy on August 08, 2001 at 6:55 PM

: Ward, I was reading through some of your literature you handed out during one of your seminars in Newport, and I came across this phrase, "...but avoid 'property profiles' since they are mandated incomplete by the insurance commissioner."

: What exactly is the incomplete part of the profile?

: Also, are you familiar with a CMA (Comparable Market Analysis) or "GI", both issued by Title Companies? If so, what do you think of those?

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Troy, the insurance commissioner’s office in CA is the watchdog of the insurance industry in this state. Title insurance companies operate under its jurisdiction. Therefore, when an investigation into the title insurance industry’s competitive practices in the 70’s disclosed widespread anti-competitive conduct, the commissioner’s office instituted tactics to stop it.

One particularly egregious practice that was clobbering the smaller regional title companies was the stratagem of their much larger competitors to give away free, a virtually complete title report. It was something that the more diminutive title companies couldn’t afford to do.

So the commissioner stepped in and dictated that title companies were not allowed to give away a complete title report for free, that the freebie (property profile) could only contain part of the title record to a property. Primarily it can only contain a copy of the last vesting document (deed) and any other document that recorded concurrently with it. But anything that was still of record before the deed recorded, or became of record after the deed recorded, cannot be shown. In addition the property profile can also contain comparables, a detailed description of the property, a property tax record, a plat map, neighborhood info., statistics, etc.

Other freebies that weren’t that close to the core of the title companies main function—that of disclosing who owns a certain parcel and all the open, operative liens and interests thereto, are allowed free rein, such as the CMA, etc.

Personally, I think the Property Profile is dangerous. It’s too easy for the frazzled foreclosure buyer to forget that it’s incomplete in title information when it contains a plethora of other seemingly useful info. Because it’s incomplete in its fundamental title info it’s basically useless “eye candy”.


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