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LAW

CHAPTER XII.

THE TITLE INSURANCE DEPARTMENT.

AWS have been enacted in many of the states throughout the country during the past twenty-five years providing that companies may be incorporated for the purpose of guaranteeing or insuring the title to real property and to conduct a mortgage loan and trust company business; the latter, however, being consistent with the powers granted them as such title guarantee or insurance companies. Among the powers of such a company is the right and authority to prepare and furnish bonds, mortgages and other securities and to guarantee the validity and due execution of the same as well as the performance of contracts incident thereto; to make loans for itself or as agent or trustee for others and to guarantee the collection of interest and principal of such loans; to take charge of, sell, mortgage, rent or otherwise dispose of real estate for others, and to perform all the duties of an agent, or trustee, relative to property conveyed or otherwise entrusted to it. Such title guarantee and trust companies have been organized and are doing business in most of our large cities. These companies preliminary to commencing work usually acquire the books or records of local abstract firms, or corporations, as a basis for their future guarantee plants. During the past decade the growth of these companies has been very rapid by reason of their extensive operations resulting from their combined powers. Experience has proven that in the consolidation of the guarantee and trust features better results have been obtained for each; this is very well illustrated in the case of a mortgage loan made by the company; after the loan has been approved and accepted the title to the property to be secured by the mortgage is guaranteed by the company; after which, if desired, the mortgage can be placed upon the market and be handled to better advantage than one not so guaranteed.

In order to fully understand how such companies transact their business in the exercise of their powers enabling them to issue their different forms of policies of title insurance it is necessary to go into detɛil and explain their procedure.

To begin with the title insurance company owns its abstract plant, built on the most modern and approved plan, consisting of a complete history of the title to all of the real estate in the territory where it does business, including not only a transcript of the deed, mortgage, probate and tax records, but of all other matters of record which may affect the title, such as judgments, decrees, executions, levies and pending suits in any court of record, whether federal, state, county or municipal, including also plats and maps showing partitions, subdivisions, street and alley openings and vacations, etc. The necessity for this is obvious, for in guaranteeing titles the company must be absolutely certain that the ab

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stract work is accurate and beyond question, and this can only be accomplished by using a plant over which it has full and complete control and supervision.

In applying for title insurance it is not only customary but the rule to require applicants to fill out printed applications for the same, wherein

Form 1 P. 149-05. M

No.............

CLEVELAND, O,

0 January 4th 1907

The undersigned hereby employs THE GUARANTEE TITLE AND TRUST COMPANY to examine the title to premises hereinafter described, and if it approves of the same, to issue a Policy in its usual form against liens or defects in

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It is agreed that the foregoing statements are true to the best of.. representations on the faith of which said Policy is to be issued.

knowledge and belief, and are

The applicant hereby agrees that if, before the delivery of the Policy, he or his agent, should have any notice or information as to defects, objections, liens or incumbrances affecting the title to be insured, he will at once fully make known the same to the Company.

The applicant understands that under the Policy to be issued, the Company will not insure against special assessments or liquor taxes, nor the rights and claims of parties in possession not shown of record, nor conveyances, agreements or mechanics' liens not filed or of record at date of issuance of Policy.

The applicant hereby agrees that whenever the Company notifies him that it will issue a Policy, he will accept the same and pay the premium therefor.

If the Company, after examination declines to issue the Policy on account of defects in the title, the applicant agrees to pay the necessary expenses incurred by the Company in making such examination.

John Benson Thomandapplicant.

FIG. 276.-APPLICATION FOR GUARANTEE OF TITLE.

are to be found a number of questions relative to the proposed insurance and which are agreed upon to be a warranty of the facts therein contained. Figure 276 shows a form of such application.

It will be observed that the application shown as Figure 276 is intended for an owner's policy; the form for an application for a mortgage,

leasehold or any special policy is the same, but the answers to all of the questions relating thereto must be consistent with the estate or interest to be insured.

After the application has been received and accepted by the company an abstract of the title to the property sought to be guaranteed is prepared and submitted to the title officer of the company. If, in his opin

THE

Guarantee Title and Trust Company,

No.19551.

CLEVELAND, OHIO.

Policy of Title Insurance.

THE GUARANTEE TITLE AND TRUST COMPANY, by this policy of insurance, in consideration of the sum of One Hundred oooo Dollars ($100.00)

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executors, adurinistrators, heirs and devisees, and all other persons to whom this Policy may be
transferred with the assent of this Company, testified by the signature of its proper officer endorsed
on this policy, against all loss or damage not exceeding-Ten Thousand oooo Dollars
($10000.00).

dollars, which the insured shall sustain by reason of defects, or unmarketability of the title of the insured to the estate, mortgage, or interest described in Schedule A, hereto annexed, or because of liens or incumbrances charging the same at the date hereof, excepting only such liens, incumbrances and other matters as are set forth in Schedule B, or excepted by the conditions of this policy hereto annexed, and hereby incorporated into this contract, the loss and the amount to be ascertained in the manner provided in said conditions, and to be payable upon compliance by the insured with the stipulations of said conditions and not otherwise.

This Policy is issued upon application by or on behalf of the insured, numbered 19551, and agreed by all parties claiming hereunder to be a warranty of the facts therein stated.

In Witness Whereof, THE GUARANTEE TITLE AND TRUST COMPANY hath caused its corporate seal to be hereto affixed and these presents to be signed by its President and attested by its Secretary, this - Eighth- day of- January of our Lord one thousand nine hundred and seven, at 3:40 P. M.

in the

year

Amor Me Nairy

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President.

Attest:

Secretary.

FIG. 277.-TITLE INSURANCE POLICY (first page).

ion, the title is insurable, he directs the issuance of the policy in accordance with the forms shown as Figures 277, 278, 279 and 280. If the owner of the estate to be guaranteed is a corporation, co-partnership or association, the policy would run to it, its successors and assigns, instead of to a person, his or her executors, administrators, heirs and devisees, as shown in Figure 277.

Figure 278 shows an absolute or fee simple estate guaranteed. This form is commonly known as an owner's policy and is used as such, and the company's liability thereunder is forever, or until the policy is surrendered and cancelled, in accordance with its conditions.

Policy No. 19551.

SCHEDULE A.

1. The estate or interest of the insured in the premises described below, covered by this policy

Fee Simple.

2. The deed or other means by which the estate or interest covered by this policy is vested in the insured.

An undivided one-half interest in premises described below by
Descent through the Estate of S. P. Burke, deceased. Estate admin-
istered upon in Cuyahoga County Probate Court,Docket 101,No.16378.
An undivided one-half interest in premises described below by
Warranty Deed from A. D. Fraser and Mary A. Fraser, his wife,
John Benson Thomas, dated January 8, 1907, filed for record
January 8, 1907, at 3:40 P. M., and being File No. 550,731.

3. The premises in which the insured has the estate or interest covered by this policy.

to

Situated in the City of Cleveland, County of Cuyahoga and State of Ohio, and known as being SubLot No. 30 in V. C. Leslie's Subdivision of part of original One Hundred Acre Lot No. 491, as shown by the recorded plat in Volume 60 of Maps, Page 3 of Cuyahoga County Records, and being 40 feet front on the Easterly side of E. 132nd Street and extending back of equal width 120 feet deep, as appears by said plat.

Cancelled

FIG. 278.-TITLE INSURANCE POLICY (Continued).

In other forms of Schedule "A" (Figure 278) where the estate or interest insured is for life, term of years or mortgage, Item 1 of the schedule would show the nature of the estate insured and Item 2 would disclose the source by which that estate was vested in the insured.

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