You have a right, under Illinois law, to select any title agency you like. Simple as that. Boiled down: No firm which may make a loan secured by an interest in real estate with a single family residence shall require, either directly or indirectly that any borrower obtain title insurance through a particular insurer, agent, or broker. Here it is in its entirety:
(815 ILCS 505/2T) (from Ch. 121 1/2, par. 262T) Sec. 2T. No person, firm, corporation, partnership or association which may extend credit or make a loan secured by an interest in real estate which is or is to be improved with a single family residence or any residential condominium unit occupied or to be occupied as a principal residence by either the borrower as an individual or, if the borrower is the trustee of a trust, by a beneficiary of that trust, shall require, either directly or indirectly, as a condition precedent to making such loan or extending such credit (a) that any seller, borrower, mortgagor or debtor to whom such money or credit is extended negotiate, obtain or contract for title insurance through a particular insurer, agent or broker; or (b) that any seller, borrower, mortgagor or debtor pay for a title commitment or policy other than a title commitment or policy issued at the request of the seller, borrower, mortgagor or other debtor. Nothing contained in this Section shall be construed to prohibit the lender from requiring title insurance as a condition of making a loan secured by an interest in real estate. The lender may refuse to make the loan or may reject the title insurer or the proposed policy if the lender believes on reasonable grounds that the title insurance will afford insufficient financial protection to the lender or insufficient protection as defined under regulations administered by the Federal Home Loan Bank Board. Nothing contained in this Section shall be construed to affect any provision in a contract between a seller and buyer of real estate with respect to the selection of title insurance. (Source: P.A. 85‑1209; 85‑1351; 85‑1440.)
Certainly makes me wonder about lenders who, when faced with this statute, still refuse to let their borrowers select their own agent. What exactly do they have to hide? Are they receiving illegal kickbacks? Is their title agent a little "flexible" with the rules? Something even more nefarious? There are a few lenders in this area who have refused to allow borrowers to choose their own title agent. I wonder how much they will enjoy defending an Illinois Consumer Fraud and Deceptive Business Practices Act claim? Please call me if your lender has problems understanding this law. Or better yet, find a new lender.
www.thomasmoens.com
Showing posts with label chain of title. Show all posts
Showing posts with label chain of title. Show all posts
Wednesday, February 6, 2008
Friday, August 10, 2007
Illinois Deed Provider, Inc.
Several clients have called recently regarding a letter they received from Illinois Deed Provider, Inc. Illinois Deed Provider, Inc. proposes to obtain a certified copy of your deed for $89.50. My advice, save your money, or donate it to a worthy cause.
The letter claims that a certified copy of your deed "provides evidence that your property was transferred to you." It does no such thing. As a real estate attorney, I can assure you that it is absolutely unnecessary to have a certified copy of your deed. Deeds are not like the title to your car–you do not need your deed--original or copy--to sell your real estate or otherwise to prove ownership. One deed, standing on its own, is meaningless.
It is necessary to follow the chain of title to determine ownership. In other words, I could give you a deed to the Centennial Bridge, and it could be recorded, and you could obtain a certified copy of that document. However, unless I owned the Centennial Bridge, and the person who deeded the property to me owned it, and the person before that person, etc., you just received a deed to nothing. No amount of certification changes this simple fact.
Further, those documents are part of the permanent record at the Recorder’s Office, and you can obtain copies anytime you like. So, if it ever turns out for some peculiar reason you need a copy, it can be obtained with one visit to the Recorder’s Office. By the way, the Recorder's Office charges $49.00, there is no parking fee, and you only need to go there once, contrary to what the Illinois Deed Provider folks might try to tell you.
Their letter claims that the U.S. Government recommends that you have "an official or certified copy" of your deed. I looked at the page they say recommends this. It says nothing of the kind. The page contains a list of documents you should consider keeping in your safe deposit box. In the section regarding what you should keep in your safe deposit box, it says, "If applicable, you should have official or certified copies of documents for your safe deposit box" [emphasis added]. Since, in Illinois and Iowa at least, it is unnecessary to have a certified copy of your deed, I would state unequivocally that this recommendation is not applicable with regard to deeds.
The company appears to owned by an Illinois licensed real estate broker by the name of Barry Joel Isaacson. Mr. Isaacson is not an attorney, even though he is giving legal advice by explaining the legal effect of documents to others. In my opinion, this is the unauthorized practice of law.
If you receive this letter, please, please, please, just ignore it. If you are deadset on giving away money, please consider a donation to the Animal Aid Humane Society or the Quad City Animal Welfare Center instead of Mr. Isaacson. At least then it will be for a good cause.
www.thomasmoens.com
The letter claims that a certified copy of your deed "provides evidence that your property was transferred to you." It does no such thing. As a real estate attorney, I can assure you that it is absolutely unnecessary to have a certified copy of your deed. Deeds are not like the title to your car–you do not need your deed--original or copy--to sell your real estate or otherwise to prove ownership. One deed, standing on its own, is meaningless.
It is necessary to follow the chain of title to determine ownership. In other words, I could give you a deed to the Centennial Bridge, and it could be recorded, and you could obtain a certified copy of that document. However, unless I owned the Centennial Bridge, and the person who deeded the property to me owned it, and the person before that person, etc., you just received a deed to nothing. No amount of certification changes this simple fact.
Further, those documents are part of the permanent record at the Recorder’s Office, and you can obtain copies anytime you like. So, if it ever turns out for some peculiar reason you need a copy, it can be obtained with one visit to the Recorder’s Office. By the way, the Recorder's Office charges $49.00, there is no parking fee, and you only need to go there once, contrary to what the Illinois Deed Provider folks might try to tell you.
Their letter claims that the U.S. Government recommends that you have "an official or certified copy" of your deed. I looked at the page they say recommends this. It says nothing of the kind. The page contains a list of documents you should consider keeping in your safe deposit box. In the section regarding what you should keep in your safe deposit box, it says, "If applicable, you should have official or certified copies of documents for your safe deposit box" [emphasis added]. Since, in Illinois and Iowa at least, it is unnecessary to have a certified copy of your deed, I would state unequivocally that this recommendation is not applicable with regard to deeds.
The company appears to owned by an Illinois licensed real estate broker by the name of Barry Joel Isaacson. Mr. Isaacson is not an attorney, even though he is giving legal advice by explaining the legal effect of documents to others. In my opinion, this is the unauthorized practice of law.
If you receive this letter, please, please, please, just ignore it. If you are deadset on giving away money, please consider a donation to the Animal Aid Humane Society or the Quad City Animal Welfare Center instead of Mr. Isaacson. At least then it will be for a good cause.
www.thomasmoens.com
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