Role of Title Insurance

“Title Insurance Makes Certain Your Home Remains Yours” (May 20) appeared to be a nationwide treatment. Actually, the only area of the country that follows the practices outlined is New York state and several generalities were made that are potentially misleading.

Consumers who pay for title insurance will find that only a small percentage of closing costs are for title insurance to provide indemnity against covered title risks, including failure of title resulting from forgery and to provide legal defense against covered claims whether valid or not.

The article stated that title insurers check permits and the validity of certificates of occupancy. That is not correct. In all areas, such matters are excluded from coverage as zoning-related matters, although this company makes a limited form of zoning coverage available as a matter of course for homeowners’ protection in most of California and in many other states.

In 12 western states, Hawaii and Alaska, the involvement of attorneys in the title insurance process is almost nonexistent. While the attorney certainly has a place in the real estate transaction, especially more complex ones, the relative roles of the attorney and the title insurer or agent vary widely across the country.

The best advice to give your readers everywhere is: Shop around, ask questions, compare service capabilities and prices and do not assume that real estate transactions and related services, including title insurance, are handled in one geographic area the same way as in another geographic area. Your local title insurer, title agent, escrow company, real estate agent, attorney or other real estate professional should be consulted if you have any questions.

ERICH E. EVERBACH

Los Angeles

Everbach is general counsel forTicor Title Insurance.