I recently wrote a blog post titled “Can Just Any Monkey Do a Real Property Title Examination?” where I shared a story about a title examination in which a bank loaned $100,000 to a couple who owned only a 25% interest in the property. Unfortunately, the bank had no idea that other heirs also held ownership interests because the title examiner failed to catch the issue.

Title Work Is Not Clerical Work

Today’s post covers another title examination that demonstrates why real property title work cannot be treated as simple clerical work. It requires experience, attention to detail, and the ability to identify issues that may not be obvious from a cursory review of the records.

The story is also a testament to why divorce lawyers shouldn’t draft deeds.

The Divorce Deed Problem

A married couple acquired property as tenants by the entirety, and a year later, another deed was filed giving them essential easement rights to access the property. A few years later, pursuant to a separation agreement, the wife attempted to convey the property to the husband. However, the wife’s divorce lawyer included only the easement property in the legal description and not the subdivision lot. The problem went undetected until the husband was ready to sell the property, and I performed the title exam.

A Messy 50% Interest

What happens if “just any monkey” did the title exam and didn’t catch this issue? The wife and possibly her heirs retain a messy 50% interest in the property, which becomes a powder keg of problems for the title company and the future owner. Perhaps time has made everyone bitter, and no one is inclined to help resolve the issue easily.

Additionally, in a strange twist, my title exam revealed that through a legal special proceeding, the husband changed his last name to his wife’s maiden name, and the wife took the husband’s birth name upon marriage. He took title to the property in question in his newly adopted legal name, but I realized I would need to check real property records and judgments in his birth name as well. The search didn’t uncover any additional problems, but it certainly could have.

Their divorce proceedings show that the wife petitioned the court to resume using her maiden name. I wonder what the husband will do?

Experience Matters in Title Examinations

Situations like this one, and the $100,000 mortgage problem I discussed previously, are reminders that real estate lawyers and title companies should carefully vet their title examiners. They should appreciate the value and insight that experienced examiners bring to the process rather than simply chasing the lowest fees in town. 

While I’m not perfect by any means, 40,000+ title exams have made me better than your average monkey.

My title summary header was once adorned with the slogan, “Paying for experience won’t cost you more, but inexperience can cost you dearly.” I eventually took it down out of humility, but after searches like these, it’s hard to argue with it.