I took a call today from a company whose phone number looks like they should be in New Jersey and they may actually have a location there, but maybe not. This firm does outsourcing of title services for large title underwriters and for some large banks. They wanted to know whether or not I would be interested in meeting with them or having a phone consultation about their services. I politely responded with a resounding NO THANK YOU.
Title services, much like services rendered by Realtors, is very localized. In the conversation that I had with the representative of this outsourcing firm they advised me that could offer me competitive pricing on such things as title searches, document preparation, binder and HUD-1 prep, etc. A review of their web-site indicated that they used "off shore" sourcing for many of the services rendered. Meaning, probably, India.
I did take a few moments to ask a few questions; particularly how they, based either off shore or in another state, were able to provide me with a complete 60 year search in Maryland. She responded by stating that they do all of their searches "on line" with the assistance of "title plants" that they have created. Well, that's fine, EXCEPT that you cannot access all necessary documents on line in the State of Maryland. Yes, you can certainly get a list of all documents that have been PROPERLY indexed in the Maryland SDAT data base, and yes, you can actually print those documents, but who is going to review the description to insure that, despite the fact that it may have been copied and pasted from document to document, it really describes the subject property. Who will find all necessary documents relating to water-sewer hook up fees, easements, grants to utility companies, etc., How will they know if they are still applicable to the subject property? What if there are documents that have been mis-indexed?
What if there are liens or judgments that have been filed? You cannot access the necessary documentation on line for those type items, you physially have go to the courthouse, pull the circuit court file and have your attorney determine it's relevance to the transaction. And what if the property you are transferring has been or is currently in active foreclosure? That's a whole different issue. I really could go on and on, but you get the gist. Title searches need to be done in the LOCAL courthouse, not by someone sitting behing a screen in a cubicle in India or the Phillipines who has access to the SDAT data base. And be reminded that the SDAT data base states as follows: "Data on the Real Property Data Search System is updated every Tuesday, Thursday and Saturday morning. While we have confidence in the accuracy of these records, the Department makes no warranties, expressed or implied, regarding the information."
On more than one occasion we have found the data to be incorrect. You must remember that this web-site is a STARTING PLACE for information not the place to rely upon when insuring title to what is likely your most expensive asset.
The point being of course that I don't have any comfort level with "outsourced" titles. But what gave rise to today's rant is this article that I read this morning about the outsourcing of LEGAL SERVICES.
http://www.nytimes.com/2010/08/05/business/global/05legal.html?_r=1&ref=business
A read of this article will reveal that many firms have taken to outsourcing some of the more "menial" tasks performed by entry level attorneys. From the article:
Many corporations agree that outsourcing legal work, in some form or another, is here to stay.
"We will continue to go to big firms for the lawyers they have who are experts in subject matter, world-class thought leaders and the best litigators and regulatory lawyers around the world - and we will pay a lot of money for those lawyers," said Janine Dascenzo, associate general counsel at General Electric.
What G.E. does not need, though, is the "army of associates around them," Ms. Dascenzo said. "You don't need a $500-an-hour associate to do things like document review and basic due diligence," she said.
So, ok, maybe that makes economic sense, but what does that do for those young people who have just passed the bar after having studied US law, hopeful of becoming a junior associate for a firm in their home town or home state, or for that matter anywhere in the US? Well, it very much limits their ability to achieve the level of success and profitability that they worked so hard for.
I don't suppose that the fact that I am wholly against outsourcing these type services will ever make a bit of difference, but for myself I will continue to utilize the services of attorneys here in Maryland who are all well versed in property and title law for title searches on properties for which I will be offering title insurance. It's my small way of supporting our LOCAL economy and for ensuring that the policy I issue to you or your lender will be based on a through review and analysis of ALL pertinent facts surrounding the subject property by a competent title attorney and/or examiner who is familier with the LOCAL jurisdiction.
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