Charrison Davis is pioneering the new concept of offering title insurance at auction.
Working with First Title Insurance, a subsidiary of First American Corporation the world’s largest insurer of title Charrison Davis trialled the concept at its September auction.
“It was the first time it’s ever been offered at auction,” said auctioneer Guy Charrison. Although take-up of the insurance was not “universal”, there was “good interest” from buyers and sellers.
“It frightens me the number of people who buy at auction without looking at the legal packs,” he added. “Title insurance would give them that extra bit of confidence.”
Title insurance policy would protect buyers against both known and unknown title defects on a property. And because it is a no-fault indemnity, a claimant would not have to prove negligence, just that he had suffered a loss insured by the policy.
Examples of cover include: lack of legal right of access, a document not being properly signed, or defects not discovered within a local authority search.
Ian Borders, head of residential underwriting at First Title, described the policies as “a tool to streamline the whole auction process so the seller is more likely to sell and bidders are more likely to bid”.
