The US Legislation Of Title Insurance System And The Reflection On China

Title insurance originates in the United States of America, whose main function is toinsure the safety of real estate transfer. With its development of more than a century,buying title insurance is one of the indispensable steps during the trading of title. Titleinsurance is, after prudent title investigation, to form a title report in which the insurancecompany promises that if there are defects or encumbrances on the title which should becontained in the title report but actually not, the insurance company would take theresponsibility to eliminate defects or encumbrances, or give compensations. Titleinsurance matures in the United States of America and now has permeated into Europeancivil law countries and some former socialist countries. Title insurance offers safeguardfor the safety of real estate transfer which is worth learning. However there is no similarregulation in China and the study into title insurance is rare. Thus, the author wouldanalyze title insurance and on which base to put forward the inspiration for China.This paper contains five chapters.Chapter one introduces the basic information about title insurance of the UnitedStates of America, including the beginning of it, that is the case of Watson vs. Muirhead;the earlier history and further development and then the main component of titleinsurance.Chapter two starts from the characteristics of title insurance, which is theretrospective nature, the importance of underwriting, service of title insurance, indefiniteterm, insured parties, the amount of insurance, contract of indemnity, subrogation,noncancellable, assignment and reissue policies. For the consideration of deeperimpression on readers, the author compares the title insurance with other insurance: thedifference of the period of time, the distinction from other real estate insurance and thediscrepancy between title abstract.Chapter three addresses the function and effect of title insurance. In details, itsfunctions exist in the fields of risk avoiding, information ordination, service and riskdiversification. The effects of title insurance are defining the state of the title, promotingthe transfer of real estate, advancing finance of the real estate market and protecting theinsured from unnecessary loss; With detailed analysis of the functions and effects of titleinsurance of the United States of America, the advantages of title insurance is obvious. Chapter four resolves the current situation of real estate in China from two aspects.Firstly, the author gives introduction to the two legal systems of real estate protection, thatis, the registration system and insurance system. In the second part the author points outthe disadvantages of these two systems.Chapter five is about the enlightenment on China. The author discuss it from thefollowing three perspectives: the importance for China to build the title insurance policy,and how to build the title insurance in China and problem should pay attention to.Considering the Sino-US distinguishes, we should pay special attention to the titleinvestigation, the settle of fee and the balance of interest conflicts. One more thing weshould bear in mind is the cultivation of talents in title insurance.This paper applies the comparative analysis and sociology analysis method, on thebasis of study on title insurance home and abroad, the author tries to research the titleinsurance in the United States of America and attempts to put forward some suggestionsfor Chinese real estate market. However, because of the legal theory limitation of theauthor and the lack of materials, there are some disadvantages which need critics andadvices from senior scholars and peers. The value of this paper is to put up somesuggestions for Chinese real estate market on the analysis of title insurance of the UnitedStates of America. The author wishes more scholars would understand the title insurancepolicy and study it deeply and finally improve Chinese real estate market regulation.