I know customs for ownership and encumbrance reports and "to be determined" title commitments vary from state to state, but I'm curious how many states actually charge for the services provided? The Colorado Division of Insurance recently has proposed changes to the title company rule 3.5.1 regulation stating that providing these services free of charge is a violation of that ruling (or an inducement for business). So, title companies in Colorado will have to begin to charge for a service that has traditionally been complimentary to the Realtors and real estate investors for decades. Ironically, in other parts of our state, many title companies already charge because the process is so labor intensive (it requires a trip to the county to actually review the grantor/grantee books). In the metro and front range areas, it's a quick, computer search through the "shared" title plant.
I feel that providing title reports to the Realtor before taking a listing are definitely a valuable service, and I'm not sure how these new rules and regulations will affect the way we have always done business here in Colorado. If anyone would like to respond on how their state currently handles this and what they're charged, I'd be interested in hearing it.
Ownership and encumbrance reports are valuable for showing not just the vesting of the property, but the outstanding liens and other title problems that are posted against the property. To Be Determined title commitments are important for keeping the title "open" so if anything is recorded, it'll "pop" out and inform the parties before it's actually under contract. It's also wonderful to clear title "flaws" when the seller has a very common name like Smith, Brown, Gonzales, etc. A bunch of judgements can turn up against the name, but can be easily cleared before the buyer is in place.
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