Title insurance has come of age, says Steven Clarke.
From fast food to Facebook, there are numerous examples of companies and technology making the successful transition from America to the UK. But it doesn’t always work that way. In the same way that the American public has never fully grasped the British obsession with football, the US concept of title insurance has traditionally met with similar resistance over here.
Title insurance originated in America as a by-product of the country’s disparate land registration laws, which vary not only from state to state, but also county to county. Designed to cover all unknown defects in title that come to light after completion, it became an important part of purchasing property in the country - and remains so today. Indeed, the whole structure of the conveyancing process in the US is based around the title insurer; it is they, and not a solicitor, who investigate title and sell policies directly to purchasers.
A sceptical UK market
Unsurprisingly, a concept that largely excludes solicitors from the conveyancing process has never taken off in the UK.
