It is standard procedure for us to obtain printouts of all grantor/lien searches we run on the clerk's computerized index. It has saved me thousands of dollars in claims to be able to show whether a document was properly indexed or not at the time of the search.
I had a case several years ago where we ran a title for a residential sale. The attorney held the closing and issued a check to the seller for his equity. The seller cashed the check ($65K+), then flew to Vegas and blew all the money. 2 days after the closing the attorney got a call from the bank asking for the payoff funds for their 2nd loan (which the bank had not disclosed when the attorney called for a payoff on the 1st and the seller did not disclose at the closing). Of course the attorney contacted me, yet a second search did not reveal the 2nd loan. The bank provided the recording information and we were able to determine the clerk had mis-spelled the owners name, causing us to be unable to locate the document through a name search. Because I was able to document the clerk's error, the title insurance company which insured the purchase was prepared to file suit against the clerk. Ultimately, the seller's father paid the 2nd loan off, resolving the matter. The situation might not have ended so well (for me) had I not been able to document the mis-indexed loan before the clerk corrected the records.
to post a reply:
login - or -
register