Unlike any other kind of insurance, title insurance originated in America. In 1874 Pennsylvania enacted the first statutes authorizing the issuance of title insurance. In the years that followed, title insurance became common first on the east coast, and then spread westward as real estate transactions grew in numbers. During the industrialization and westward expansion of America, the buying and selling of real estate became an important sector of the economy. The American Dream of land ownership may have begun with the Pilgrims, but it wasn’t until regulated systems within government to record real estate ownership, (Title), were established that a Buyer’s investment was legally protected.
Companies issuing title insurance played an important role in standardization of mortgages, procedures, and forms. These policies would assure a Buyer that the Seller was the legal owner of the real estate being purchased. American Land Title Association (ALTA) was formed in 1907 and is still fully participative in the industry today. With the advent of Fannie Mae in 1938, mortgages became the most common instrument used for real estate purchase. To protect its investors, Fannie Mae required the Borrower to purchase Title Insurance that would cover the loan in the event the Borrower did not perform. This policy pledged that the Lender would be made owner of record and could legally sell the real estate and use the proceeds to settle the loan.
Regulation of title insurance is each state’s obligation, and we are experts in Utah’s directives and statutes. If you have questions about Utah’s real estate or title insurance, please feel free to call Inwest Title Services at 801-399-3544 or visit us on the web at www.inwesttitle.com.