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Commonwealth Land Title Insurance Company

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Adapted from the English Wikipedia article Commonwealth Land Title Insurance Company, available under CC BY-SA 4.0Updated 8 August 202516 sources
Real Estate Title Insurance Company of Philadelphia
FormerlyReal Estate Title Insurance Company of Philadelphia
Industrytitle insurance
Founded1876
HeadquartersPennsylvania
Key people
Joshua H. Morris

The Real Estate Title Insurance Company of Philadelphia holds the distinction of being the inaugural title insurance firm worldwide.[1][2][3]

Background

Prior to the advent of title insurance, purchasers assumed complete responsibility for confirming the legitimacy of property titles during real estate deals, facing potential total financial loss if titles proved invalid or fraudulent.

The Pennsylvania Supreme Court's decision in Watson v. Muirhead in 1868 established that a conveyancer was not accountable for mistakes arising from professional judgments concerning liens identified before a sale.[4] This ruling prompted the Pennsylvania legislature to authorize the formation of title insurance companies under The General Corporation Act of 1874.[1][5]</ref>

History

On March 28, 1876, Joshua H. Morris, a conveyancer based in Philadelphia, along with associates, founded the first-ever title insurance company. Their objective was to "protect buyers of real estate and mortgages against losses caused by defective titles, liens, and encumbrances," thereby enabling more efficient and secure property transfers. The enterprise was designated The Real Estate Title Insurance Company of Philadelphia.

The company's initial policy, with a coverage amount of $1,500, was issued on June 24, 1876 to Martha Morris for a mortgage on a residence in Philadelphia.[6]

In 1881, the organization was renamed The Real Estate Title Insurance and Trust Company of Philadelphia. It combined forces in 1927 with Land Title and Trust Company (established in 1885) and West End Trust Company to create The Real Estate-Land Title and Trust Company, which was subsequently rebranded as Land Title Bank and Trust Company in 1936.[7] A merger in 1953 with Tradesmen National Bank resulted in Trademens Land Title Bank and Trust Company; its title insurance segment became the Land Title Insurance Company subsidiary.[8] This subsidiary was divested to Commonwealth Title Company later in 1955.[9]

Established in 1886, Commonwealth Title Insurance and Trust Company of Philadelphia[10] merged with Provident Trust Company in 1928, transferring its title insurance functions to the Commonwealth Title Insurance Company subsidiary.[11] By 1929, this subsidiary had consolidated six regional Philadelphia title insurers and acquired Pennsylvania Title Insurance Company in 1938.[12]

In a significant consolidation in 1955, Commonwealth merged with Land Title Insurance Company—the successor entity to the original Real Estate Title Insurance Company—forming Commonwealth Land Title Insurance Company.[9] Expansion continued with the acquisition of Louisville Title Insurance Company in Kentucky during 1964.[13] Further growth included a merger with Provident National Bank in 1969,[14] followed by its acquisition by Reliance Group, Inc. in 1975.[15] While under Reliance’s ownership, Commonwealth combined with Transamerica's Transamerica Title Insurance Company in 1990, eventually operating as Transnation Title Company.[16] Ultimately, it became part of LandAmerica; following LandAmerica’s bankruptcy, Commonwealth was purchased by Fidelity National Financial.

External links

  1. ↑ 1.0 1.1 Cite error: Invalid <ref> tag; no text was provided for refs named what
  2. ↑ Bintinger, Paul. Georgetown Journal of Legal Ethics, 1990 4: 687.
  3. ↑ The New York Times, 6 October 1888.
  4. ↑ 57 Pa. 161 (1868)
  5. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named history
  6. ↑ Harry K. Loper, “The Story of a Bank,” Landmark (March 1951): 6.
  7. ↑ A History of the Real Estate Title Insurance and Trust Company of Philadelphia, Philadelphia, 1895?; Harry K. Loper, Landmark (1951): 10.
  8. ↑ The Wall Street Journal, 24 January 1955.
  9. ↑ 9.0 9.1 Cite error: Invalid <ref> tag; no text was provided for refs named Wall Street Journal 1955, p. 8
  10. ↑ "Commonwealth Title Insurance and Trust Co.," Moody's Magazine 17 (1914):90.
  11. ↑ The New York Times, 10 April 1928.
  12. ↑ The New York Times, various dates.
  13. ↑ The Wall Street Journal, 20 April 1964.
  14. ↑ The Wall Street Journal, March-April 1969.
  15. ↑ The Wall Street Journal, late-1974/early-1975.
  16. ↑ The Wall Street Journal, January 1990.

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