VLTA Examiner, Issue 22.1 by Virginia Land Title Association

VOLUME 22.1 • SPRING 2016 THE MAGAZINE OF THE VIRGINIA LAND TITLE ASSOCIATION

VLTA

EXAMINER

Examining Title to Streets with Doug Dewing

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E N D ORS E D BY A LL TH E M A JO R U N DE RWR IT ER S AND BY T HE AMER ICAN L AND T IT L E ASSOCIATION

VLTA

EXAMINER upcoming events April 14

Regional Education – Staunton Thursday, April 14, 2016, 9:00 a.m. – 4:00 p.m. Stonewall Jackson Hotel & Conference Center, Staunton, VA Register Online

June 3-4,

2016 Annual Convention Friday, June 3 – Saturday, June 4 Omni Hotel, Richmond, VA Learn more

September 22

Fairfax Regional Education Thursday, September 22, 2016, 9:00 a.m. – 4:00 p.m. Fair Lakes Hyatt, Fairfax, VA Learn more

October 20

Lynchburg Regional Education Thursday, October 20, 2016, 9:00 a.m. – 4:00 p.m. Craddock Terry Hotel & Event Center Learn more

VOLUME 22.1 • SPRING 2016

contents 8

An Interview with James Windsor, Esq.

This year, we honor James L. Windsor, Esq. (Jim) as one of the best and brightest of VLTA’s many devoted volunteers.

10 Don’t Break the Bank on Certification

Very few subjects in Title Insurance can draw emotions ranging from fear to ire than the ALTA Best Practices Certifications. There seems to be much misinformation and misunderstanding about Best Practices and third-party Certifications.

12 Examining Title to Streets - Part II

Since your customer wants to build something on the street, what should you be looking for to evidence that the street is closed and that the title is vested as desired?

16 On TRID and Marketing

While the two actually have nothing in common, it’s likely that your compliance efforts are forcing you to be thriftier with your marketing. Here are a few suggestions for keeping it effective.

19 Tales from the Table

By now, we all have had at least one borrower sit down at the closing table and ask us why they need to purchase owner’s title insurance since the CD says that it is optional.

20 Multi-State Transactions-Challenges and Considerations

Real estate transactions commonly involve a distinct set of challenges and timeframes. These transactions are not for the generalist. A “new” approach to multi-state transactions is in fact built on strong fundamentals of putting together any real estate transaction.

24 Not the New Kid on the Block?

In August of 2012, Virginia Land Title Association launched two VLTA sponsored certification educational courses, the Virginia Certified Title Examiner (VCTE) and the Virginia Certified Title Settlement Agent (VCTSA).

columns

5 from the President 6 from the Executive Director 7 from the Director/Editor 18 Crossword 18 Member Discount Programs 22 Tute 23 Title Tips & Trivia 26 Professional Development

FACEBOOK www.facebook.com/virginialandtitleassociation TWITTER www.twitter.com/vltanews LINKED IN www.linkedin.com GOOGLE GROUPS www.google.com The TITLE WEB www.thetitleweb.com/

Phone: 571.494.1782 Toll Free: 800.929.8730 Fax: 703.995.0649 VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 3

VLTA

EXAMINER

VOLUME 22.1 • SPRING 2016 THE MAGAZINE OF THE VIRGINIA LAND TITLE ASSOCIATION

PUBLISHER Virginia Land Title Association

DIRECTOR/EDITOR Julie Ann Rutledge, vcte President, Land Title Research, Inc. P.O. Box 3271 Stafford, VA 22555 Ph. 540.659.0107 Fax 540.659.4952 jrutledge@ltrinc.com

MANAGING EDITOR Kathleen E. Zaynullin Herndon, PhD Executive Director Virginia Land Title Association 14001-C Saint Germain Drive, Suite 822 Centreville, VA 20121 tel 571.494.1782 toll free 800.929.8730 fax 703.995.0649 KHerndon@vlta.org

Maria Deligiorgis, Esq. President Mid-Atlantic World Wide Land Transfer 1875 Connecticut Avenue, NW 12th Floor Washington, D.C., 20009 tel 202.650.0349 ext 140 fax 888.WWLT.FAX maria@wwlandtransfer.com

Palma J. Collins, Esq. First American Title Insurance Company 14150 Newbrook Drive, Suite 250 Chantilly, VA 20151 tel 703.480.9500 fax 703.480.9481 pcollins@firstam.com

Submissions to the VLTA Examiner should be made to the Director, jrutledge@ltrinc.com.

FEATURES EDITOR R. Michael Smith, Esq. Underwriting Counsel Conestoga Title Insurance Co. 137 E. King Street Lancaster, PA 17602 tel 800-861-9352 fax 800-889-0169 msmith@contitle.com

CONTENT EDITOR Colleen Taylor Agency Sales Consultant WFG National Title Insurance Company 8301 Kines Road, Warrenton, VA 20187 Ph. 703.973.9224 ctaylor@wfgnationaltitle.com

COLUMN EDITOR Anne Tourangeau

The VLTA EXAMINER is the official publication

Elizabeth H. Jamerson, vcte

President Old Republic National Title Insurance Co. 7960 Donegan Drive, Suite 247 Manassas, VA 20110 Ph. 703.365.2300 Fax 703.365.2400 kpogoda@oldrepublictitle.com

Director of Communications Jamerson Title, LLC 4200 Bromley Lane Richmond, VA 23221 Ph. 804.240.2694 Fax 804.897.8260 elizabethjamerson@verizon.net

Glenda S. Brooks, vcte, vctsa President Elect Middlesex Title Company P.O. Box 559 Deltaville, VA 23043 Ph. 804.776.9202 Fax 804.776.9696 gbrooks@va.metrocast.net

Director of Events Old Republic National Title Insurance Co. 7960 Donegan Drive, Suite 247 Manassas, VA 20110 Ph. 703.365.2300 Fax 703.365.2400 mmeloon@oldrepublictitle.com

Katherine Crawford, Esq.

Sonia Kuppert, vcte, vctsa, ntp

First Vice President First American Title Insurance Company 14368 Sommerville Court Midlothian, VA 23113 Ph. 804.419.2171 kcrawford@firstam.com

Director of Membership STA Title & Escrow, Inc. 101 Westwood Office Park Fredericksburg, VA 22401 Ph. 540.368.5501 sonia@statitle.com

Stewart “Skip” Sacks, Esq.

Norbert Prigge, Esq.

Secretary Stewart Title Guaranty Company 808 Eden Way North Chesapeake, VA 23320 Ph. 757.424.4400 ssacks@stewart.com

Director of Legislative Affairs Chicago Title Insurance Company 5875 Trinity Parkway, Suite 210 Centreville, VA 20120 Ph. 703.219.3702 Fax 703.385.2821 Norbert.prigge@ctt.com

Myrna Lou Keplinger, vctsa

published for VLTA members. Requests for

Past President The Settlement Group, Inc. 5641 Burke Centre Pkwy, # 229 Burke, VA 22015 Ph. 703.642.6002 Fax 703.642.6003 myrna@settlementgroup.com

address changes must be received 30 days prior to the date of the issue with which it is to take effect. Although advertising is screened,

PUZZLE EDITOR

tion. Articles may not be reprinted without

acceptance of an advertisement does not imply VLTA endorsement of the product, the services, or the views expressed. The views and opinions expressed in this publication are not necessarily those of the associathe consent of the VLTA. Subscriptions

Middlesex Title Company P.O. Box 559 Deltaville, VA 23043 Ph. 804.776.9202 Fax 804.776.9696 gbrooks@va.metrocast.net

are available to interested individuals or

EDITORIAL BOARD MEMBERS

don@vlta.org. Submit all articles for pub-

groups at $75.00 per year. Address all VLTA and Examiner inquiries to: VLTA EXAMINER; 14001-C Saint Germain Drive, Suite 822, Centreville, VA 20121, 571.494.1782; toll free 800.929.8730; 703.995.0649 (fax); khern-

Cheryl Klein, vcte, vctsa

lication in the magazine to: Virginia Land

Alliance National Title Company 3930 Custis Road, 2nd Floor Richmond, VA 23225 Ph. 804.562.4151 Fax 804.482.2936 CKlein@aNationalTitle.com

Title Association, 14001-C Saint Germain

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

Kevin T. Pogoda, Esq., vcte, vctsa

of the Virginia Land Title Association. It is

Fidelity National Title Insurance Company 5875 Trinity Parkway, Suite 210 Centreville, VA 20120 Ph. 571.215.1374 Fax 703.815.4374 anne.tourangeau@fnf.com

Glenda S. Brooks, vcte, vctsa

Th e m i s s i o n o f t h e Vi rgi n i a L a n d Title Association ( VLTA) is to promote communication and to provide education throughout the real estate and title insurance industries. The mission includes promoting standards and regulations that increase the effectiveness of the industries. Legislative initiatives and educational programs are primary aspects of the VLTA’s work. Leadership in ethical practices and standards is an integral part of its members’ business, within and outside of the VLTA.

2014-2015 VLTA Board of Directors

Drive, Suite 822, Centreville, VA 20121; by email at Examiner@vlta.org; or by fax to 703.995.0649.

DIRECTORS

Frank Butler, Esq. Director of Education Fidelity National Title Group 4525 Main Street, Suite 810 Virginia Beach, VA 23462 (757) 216-0488 Frank.butler@fnf.com

Megan Meloon

Julie Ann Rutledge, vcte Director of the Examiner Magazine Land Title Research, Inc. P.O. Box 3271 Stafford, VA 22555 Ph. 540.659.0107 Fax 540.659.4952 jrutledge@ltrinc.com

Kathleen E. Zaynullin Herndon, PhD Executive Director Virginia Land Title Association 14001-C Saint Germain Drive, Suite 822 Centreville, VA 20121 tel 571.494.1782 toll free 800.929.8730 fax 703.995.0649 KHerndon@vlta.org

fromthePresident Get Ready for Spring Cleaning – of Your Escrow Account Before you know it, spring will be here. Hopefully, we will be greeted by warmer weather and a strong spring market. Now is the time to consider spring cleaning to get ready. Spring cleaning is when we pull out drawers, open closets and find all the junk we need to give away. The same holds true for your escrow account. It’s time to pull out the ledger and give away all those old, unclaimed funds to the State in accordance with the Uniform Disposition of Unclaimed Property Act (Va. Code §55-210.1 et seq.) The Act states that “intangible property is subject to the custody of this Commonwealth as unclaimed property if the conditions leading to a presumption of abandonment … are satisfied.” Va. Code § 55-210.1:2. As many of us know, that presumption of abandonment is satisfied when property is unclaimed after five years:

“Click to Report Unclaimed Property.” Note that the next screen that appears tells you: REPORT EARLY!—Early reporting is authorized by 55-210.10:2. Just make sure you have performed due diligence 60 days prior to submitting your report. “Due diligence” is further defined on that same webpage as follows: For items $100 and greater in value, the law requires that written notice be sent by first class mail to the owner’s last known address on the holder’s records. The notice must: n inform them that their property is in jeopardy of being reported to the state as unclaimed n provide them with the opportunity to contact you regarding the property before it is reported n be mailed at least 60 days prior to reporting This definition is reiterated in part in Va. Code § 55-210.2. So there you have it. Don’t let the five year rule impede your efforts to conduct a spring cleaning of your escrow account. “Well,” you might say, “that’s all well and good. All you’ve told me so far is that I may escheat earlier than five years. Nothing requires me to escheat early. I’m too busy trying to deal with all the TRID-related catastrophes. I’ll escheat next year when things settle down.” If that is your reaction, then I have news for you. The requirement to escheat early may be coming your way soon. Late last year, the Bureau of Insurance proposed “Rules Governing Settlement Agents, which are regulations that implement Real Estate Settlement Agents (RESA, formerly CRESPA) found at Va. Code § 55-525.16 et seq. A copy of the proposed regulation can be found here, which was published on November 9, 2015 with an opportunity for public comment until December 31, 2015. Thanks to several requests from the VLTA and many of you, that original deadline to comment was extended until February 15, 2016. Part of the regulations proposed by the BOI is a requirement to escheat annually. That proposed regulation reads, in pertinent part, as follows:

All tangible and intangible property, including any income or increment thereon, less any lawful charges, that is held, issued or owing in the ordinary course of the holder’s business and has remained unclaimed by the owner for more than five years after it became payable is presumed abandoned, except as otherwise provided by this chapter. Va. Code § 55-210.2:1 (emphasis Kevin T. Pogoda, Esq., vcte, vctsa added). VLTA President 2015-2016 Old Republic National “Well,” you might say, “if Title Insurance Co. that is true, then I’ve got a few Manassas, VA more years to wait before all those uncashed checks on my reconciliation report ripen. It’s not yet time for spring cleaning — at least not for me.” If that is your reaction, then I have news for you. Did you notice the last phrase quoted above? It reads: “except as otherwise provided by this chapter.” In other words, there is an exception to the five year rule. What is the exception? It is this: Any holder of tangible or intangible personal property, the owner of which is unlocatable, may voluntarily report the property to the State Treasurer, prior to the statutory due dates, whereupon the property shall be presumed abandoned under this chapter.

Every settlement agent shall (i) make a good faith effort to disburse funds in its possession and return the funds to the rightful owner; (ii) escheat unclaimed funds yearly to the Virginia Department of the Treasury; and (iii) comply with The Uniform Disposition of Unclaimed Property Act (§§ 55-210.1 et seq.) of Title 55 of the code of Virginia.

Va. Code § 55-210.10:2.

Unfortunately, the Act does not define “unlocatable.” How much effort must you exert before someone is deemed “unlocatable”? The website for the Department of the Treasury, Unclaimed Property Division is instructive on this point. The site can be accessed by clicking here and then clicking on the button labeled,

So there you have it. Let the spring cleaning of your escrow account commence. Escheat early. Not only does it make good business sense, but it may very well be the law sometime this year.

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 5

fromtheExecutiveDirector Cheaper. Faster. Better. In that order. I remember listening to my mother sing the “Look for the Union Label” song when I was very little. Her generation focused on quality, motives, sourcing - all things that seem to have been pushed to the end of the line in today’s world. Today, we worry about the extra penny in the cost of our McDouble, and complain when our internet connection has slowed from lightning speed to thunder. But while most businesses have sought out ways to reduce profit margins and cater to this cheaper, faster, better sentiment, some businesses have found success in just the opposite. I’ll admit that I shop, on occasion, at the local Whole Foods. We affectionately call it the “Whole Paycheck” because the prices are KATHLEEN E. HERNDON, PHD more than double those at other Executive Director chains. Yet, despite the high prices, Virginia Land Title Association we continue to patronize the store because their products and services are of a unique and superior quality. While price gouging claims have hurt the company’s profits recently, their nicheperspective claimed over $15 billion in sales in 2015.

So why are people willing to spend so much more at Whole Foods? Perhaps there is a lesson from another company, seemingly unrelated, which can shed some light on this spending oddity. According to Advertising Age (2013), “Harley-Davidson CMO Mark-Hans Richer prides himself on using nontraditional marketing to reach motorcycle customers.” When attempting to compete with cheaper and faster motorcycle models from Europe and Asia, Richer realized that Harley could not, and should not compare itself to those brands. He redirected the company’s marketing strategy to branding a lifestyle rather than selling on the speed or cost of the bike. Playing on consumers’ passions about their own self-image, Harley saw a revival in sales, boosting profits by nearly 30% since 1987. Indeed, those who shop at Whole Foods see themselves as “different” than their generic-chain peers. They are more likely to describe themselves as “sensitive, ethical, and communicative” (Business Insider, 2015), and feel that their shopping habits should reflect their personal values. Much like Harley, their purchasing habits reflect their sense of self, and from this, we can all learn a valuable lesson. 6

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

How do consumers acquire a sense of self with respect to purchasing? Here’s the rub. Consumers don’t always know how a brand aligns with their values; and they often don’t have more than a vague or nascent opinion about certain brands or industries. This is why companies attempting to leverage this niche-outreach must focus on consumer education, typically through non-traditional efforts. Social media outreach, original content, and focused consumer education must be priorities for businesses that wish to promote the quality of their wares, rather than the speed or price. Advertising must be educational and influential more than anything else. Educational advertising must communicate with the consumer’s sense of self.

How does this affect me? Do you own a small title agency or abstracting company whose primary strength is the quality of your products & services, rather than your speed or price? How can you convince customers to choose your shop over larger shops, digital shops, or captured business arrangements? Do you have more experience, fewer distractions, or better customer service? What is your unique strength, and why does it matter to the consumer? To market your business, you first need to know what sets you apart from your competition. But what does the consumer understand about title insurance? How could they differentiate between different qualities of work? Once you know what makes your business better, you must be able to communicate this information to an educated consumer. This two-part process — education & marketing — is the path to successfully growing your business.

Call to Action VLTA invites Virginia’s small land title shops to participate in consumer outreach and education this year. Our Communications Committee would like to design a targeted consumer education program, leveraging social media to inform and energize homebuyers about the value of title insurance. We want to open the door for Virginia’s small businesses to reach out to an educated consumer. Join us in this effort to raise the water for all ships. Email us at vlta@vlta.org to join the Communications Committee.

fromtheDirector “Do not go where the path may lead, go instead where there is no path and leave a trail.” Ralph Waldo Emerson

Where are we going, where are we headed and how do we get there as an industry? When you take the time to think about it, look around at surrounding organizations, the commonality is that the organization is only as good as it’s Directors and Leaders.

Julie Ann Rutledge, vcte Director/Editor, VLTA Examiner

The kind of leadership that inspires opportunities for achievement.

The kind of leadership that offers multi-educational opportunities to stay ahead of the industry curve.

The kind of leadership that presents Regional and Convention Events that are educational and offer networking opportunities.

Members of the VLTA, take part in the many events, education and volunteer opportunities available throughout the year. Participation is essential to our association; it brings us together and creates networking opportunities. For many of us, these many opportunities lead to the development of life-long business, personal and mentoring relationships. So take a moment, look around, join others, become a part of the many opportunities that are available within the VLTA. Become a part of the process that offers opportunities for achievement and excellence. We hope that you enjoy the variety of articles offered in this issue and we want to say thank you to our contributors. Of special note is our feature article concerning streets by Douglass W. Dewing, thank you Doug for your many contributions. We want to extend our sincere thanks to all of our supporting advertisers, without whom it would not be possible to remain in print. If you enjoy writing we want to hear from you, so send in your articles and for our advertisers keep those ads rolling in.

Young Professionals Network VLTA is excited to announce our newest membership benefit – the Young Professionals Network (YPN). Our new Young Professionals Network aims to encourage young professionals to become involved in their state association and industry; share ideas and learn from their peers; offer specialized education geared towards young professionals’ needs; and offer fun activities and/or outings. While our YPN activities are geared toward those under 40, there is no age restriction and all VLTA members are welcome to participate. Our Kick-off YPN event will be held at our Annual Convention in Richmond, VA on June 3, 2016 after the Celebration Gala and Reception. The after-party will take place in the Hospitality Suite, and will feature games, food, drinks,

and fun! Learn more about VLTA’s Annual Convention at www. vlta.org/annual-convention. “YPN groups are a vital part of many industry associations, giving their members opportunities to grow professionally and build close, long-standing relationships with peers all while engaging in fun activities. The Membership Committee is looking forward to working with our young members to develop a Young Professionals Network they will be proud of”, commented Sonia Kuppert, VLTA Membership Director. If you are interested in becoming a member of YPN or working with the Membership Committee, please contact VLTA at vlta@vlta.org.

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 7

Winner of the 2015-2016 VLTA Distinguished Service Award

An Interview with James Windsor, Esq. This year, we honor James L. Windsor, Esq. (Jim) as one of the best and brightest of VLTA’s many devoted volunteers. Jim has championed VLTA’s education programs, speaking on dozens of topics at VLTA’s continuing education events. For his candor, his commitment, and his expertise, we salute Jim and his contributions to the Association. Growing up, who was your biggest influence? Why? JAMES L. WINDSOR, ESQ. Kaufman & Canoles, PC

My father has always been my biggest influence. He is my mentor, trusted advisor and life-long friend. There is not enough ink to describe the positive impact he has had and continues to have in my life.

Where did you go to college? What did you study and why?

Jim is the managing director of Kaufman & Canoles Virginia Beach office and is the Chairman of the firm’s Title Insurance Practice Group. Jim’s practice includes a broad range of civil litigation, with an emphasis on title insurance, real estate, construction, malpractice, creditor’s rights, and collection. To view sessions offered by Jim Windsor, visit the Virginia Land Title Institute. 8

I went to James Madison University to study communications and was intending to pursue a career in radio, television, or other broadcasting fields. During college, I was working at a radio station and met a lawyer with the Federal Communications Commission who indicated there would be a real need for lawyers in the near future with all of the regulations involving cutting edge technology at the time – cable television. From that point forward, I set my sights on going to law school. I graduated from James Madison University in 1982 and started law school at the University of Richmond School of Law later the same year.

How did you get into the title insurance field? What has been your career path? While I was in college, I had an internship with a local law firm and learned to examine titles. After my first year in law school, I clerked for a small law firm. I examined titles and was exposed to other areas of the firms’

VLTA EXAMINER volume 21.1, spring 2015 www.VLTA.org

general practice, including real estate. Later, during law school and during the summer after my second year, I worked at a very large law firm searching titles and was a real estate paralegal. Upon graduation from law school in 1985, I started with a midsize firm in Norfolk and worked as an associate with a senior partner who specialized in title insurance, real estate, mechanic’s liens and other related fields. After two years working with that firm, I joined Kaufman & Canoles in 1987 and my practice has been focused on title insurance, real property construction and related fields. Title insurance has been a significant part of my practice since I began over 30 years ago.

In your time in the business, what have been the biggest changes you have seen?

One of the biggest and most helpful changes I have seen is the age of electronics – and all the land records being scanned into electronic files that are accessible from anywhere in the world. No longer are we restricted by only having physical, on-site access to land records. Technology is now pervasive in almost all aspects of the practice of law. I remember in 1985 when my law firm purchased its first fax machine with thermal paper, which was “high tech” at the time.

What is the best part of your job?

I became a lawyer because I enjoy the opportunity to make a difference in people’s lives. People often come to lawyers because they

What makes the VLTA a great association?

have a problem, are seeking sound advice and need a solution. Every day, I am challenged by some of the nuances and strategy decisions in my cases, and every day I strive to overcome challenges and develop the “right” strategies to help my clients achieve a successful outcome. There is enormous satisfaction when the judge decides a case in favor of my client or a client achieves the desired result. I have a terrific team of people I work with and a top-notch network of title examiners and other lawyers who are experts in the field that I call on for some matters involving complex real estate title issues.

The VLTA is a terrific association largely because of the many dedicated people over the years who have volunteered their time and experience to serve as members of the Board and the wonderful members who comprise the Association. The VLTA strives to be a voice and an advocate of the real estate title industry in Virginia. It offers many quality educational opportunities as well as opportunities to come together socially with people who share a passion for the real estate title industry. I have proudly been a member of the VLTA for many years and I greatly appreciate the tremendous level of professionalism and effort displayed by the VLTA to remain at the forefront of the ever- changing real estate title industry.

What makes Kaufman & Canoles a great place to work?

I have been an attorney with Kaufman & Canoles since 1987. During the last 29 years, I have seen a lot of changes in our company as we have expanded our offices throughout Hampton Roads and up to Richmond. One of the constants throughout the decades is the tremendous quality of the attorneys and staff of Kaufman & Canoles — the dedication toward providing exceptional client service and our commitment to our communities in regularly volunteering with and sponsoring over 100 charities, including: CHKD, Habitat for Humanity, Hope House Foundation, Norfolk SPCA, and Virginia Symphony; and serving on the boards of community organizations such as the Boys and Girls Club and the Red Cross in an effort to make a positive difference in the lives of the people who shape our communities. In 2013 and 2014, Virginia Business and Best Companies Group named Kaufman & Canoles as one of the best places to work in Virginia.

If you can have dinner with anyone, who would it be? Jesus. I would listen much and speak little.

What’s your favorite book or movie? Why?

So many movies, so little time. Forrest Gump, Miracle, Titanic, Schindler’s List, The Green Mile, Saving Private Ryan, and other classics.

What do you do in your free time?

Spending quality time with my wife, Kay, and our three amazing children; working out and/or running in First Landing State Park or on the boardwalk at the Oceanfront in Virginia Beach; visiting our two older children at the University of Virginia and following college sports; relaxing in the Outer Banks; caring for my parents; and enjoying life.

2007 Fall Symposium

2015 Annual Convention

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 9

Don’t Break the Bank on Certification Very few subjects in Title Insurance can draw emotions ranging from fear to ire than the ALTA Best Practices Certifications. There seems to be much misinformation and misunderstanding about Best Practices and third-party Certifications. I have heard of many companies deciding to close their doors or merge businesses because of what they perceive to be the insurmountable task of becoming compliant. I’d like to take this opportunity to dispel a few myths, and hopefully put people at ease about Best Practices compliance and certifications. All lenders are required by law to adequately oversee their third party service providers. Title & settlement companies are considered a MICHELLE TATE SHERMAN, CFE third party provider of serExecutive Vice President, vices to the lenders. To fulfill Secure Title Solutions this mandate, some lenders are requiring title and settlement companies to provide a third party ALTA Best Practices Certification in order to continue to close that lender’s loans. Currently in Virginia, we know of no lenders requiring third party Certifications. Some lenders in VA have required “self-certifications”, some have sent out questionnaires, and others have requested policies & procedures manuals as a part of their due diligence. In the Southeastern U.S., we saw a snowball effect of lenders requiring Certifications. This started first with regional lender BancorpSouth, quickly followed by other regional lenders. While we have not yet heard of any lenders in the Mid-Atlantic region moving towards requiring third party Certifications for title & settlement companies, we do anticipate that once one lender makes the requirement, other lenders will quickly follow suit. Before you completely freak out, I’d like to hopefully put you at ease. The ALTA Best Practices were never meant to be insurmountable or put people out of business, and third10

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

party provided Certifications do not have to be a budget buster. Let’s explore some of the commons myths: n Pillar # 3 will cost me tens of thousands of dollars: The Best Practices states that your program to protect NPI must be appropriate to the size and complexity of your company and the scope of your company’s activities. If you are a small or medium sized company, you may not need the Cadillac of security protocols. You must adequately protect NPI, but you may not have to spend a fortune to do it. Yes, there are companies that have spent tens of thousands of dollars on security upgrades, new hardware, physical construction, etc. and they may have needed it! But it doesn’t necessarily mean YOU need it. n

I cannot afford a Best Practices Certification: There are many cost-effective solutions for small and medium sized title companies. There are examination options for smaller companies closing under 100 files per month to get certified costing between $2,500-$6,000.

A CPA firm must perform a Best Practices Certification: No lender currently requiring Certifications is mandating that they be performed by a CPA firm. The guidance from the federal regulators has not suggested that

a Best Practices certification must be performed by a CPA. Further, the ALTA has stated that certification can be provided by a “Certification Specialist”, these are usually title industry experts and not CPAs. While it may be appropriate for large firms to undergo a CPA-provided Certification or SOC 2 audit, it is not recommended or necessary for the smaller or medium sized title companies. n

mately do whatever the lender wants us to do. The lenders are under tremendous pressure from regulators to fulfill their oversight requirements. Be ready!

This is way over my head: None of the Best Practices are insurmountable! You can do this! 1. Start with reading the Best Practices;

About the Author

2. Write your policies & procedures manual. Your underwriter may have templates you can use, or you can purchase templates online;

Michelle Tate Sherman, Executive Vice President is a Certified Fraud Examiner (CFE) and has audited nationally for various underwriters over the past 20 years. Michelle earned her Accounting degree from Siena College. Michelle has uncovered numerous instances of fraud and has worked with state and federal law enforcement agencies to assist in the prosecution of white collar crime. Michelle has been an invited speaker at Land Title & Underwriter seminars throughout the country.

3. FOLLOW your policies as you will be tested on them later. n

FINAL THING TO REMEMBER: Your lender will dictate what they need to satisfy their requirement to properly oversee their third party vendors. We will need to ulti-

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 11

Examining Title to Streets - Part II In the last issue, we explored the ways and means of creating streets. These included outright purchase by the locality, dedication of easements by older subdivision plats, dedication of a fee simple by modern subdivision plats, and prescriptive easements that evolved over history. Since your customer wants to build something on the street, what should you be looking for to evidence that the street is closed and that the title is vested as desired? While the specifics have changed over the decades, the general rules remain fairly constant. The common law principles of dedication and acceptance indicate a two-step process. An offer of dedication (just like an offer to purchase) can be revoked by the offeror prior to its acceptance. An express acceptance may appear on the DOUGLASS W. DEWING instrument offering to dedicate, Commercial Underwriting or it may appear in a separate Counsel, Fidelity National Title document recorded (or not) Insurance Company decades later. I remember one examination where I discovered a general acceptance of all streets shown on all plats recorded in the County land records which was enacted shortly before the county merged with a neighboring town to be become a city. In other examinations, an apparent omission Douglass W. Dewing is an of one of the steps was often utilized by a now underwriting counsel for the deceased “land salvager” in Virginia Beach, Richmond, Virginia National who would purchase the assets of defunct Commercial Services unit developer corporations from court appointed for the Fidelity family of title receivers. He would then attempt to remove insurers. He is the author of the rights of the public by recording an A Virginia Title Examiner’s express revocation of the portions of the offer Manual (1998) and an ocwhich had not been accepted and improved casional contributor to the (often 50-100 years after the fact). It is probExaminer and other profesably not a coincidence that several court cases sional publications, where addressing partial acceptance of dedications he claims to be a “Jack of all arose in the Virginia Beach area. trades, and master of none” An easement burdening and benefitting a in the tradition of Kipling’s clearly identifiable group of properties could Elephant Child. be terminated by the agreement of all the ben-

About the Author

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

efitted and burdened owners. In the case of a platted subdivision, that includes all the owners of all the lots, and not just the immediately adjacent lots and streets. See Ryder v. Petrea, 243 Va. 421, 416 S.E.2d 56 (2004). The original plat act provided for alternate methods of vacation of streets: by action of the owners or by application to the municipality (in the same manner as used for county roads), although the early versions of the plat act allowed only the owners to vacate (or petition to vacate) the streets. The modern practice continues to provide options, but most modern developers seem to prefer the “one stop” shopping convenience of governmental action over the less convenient, and potentially more contentious, route of obtaining consent of all the owners. Subdivision plats may be vacated prior to any sale of lots by reference to the plat pursuant to Virginia Code § 15.2-2271, or after the sale of lots, pursuant to Virginia Code § 15.2-2272. Prior to the sale of lots, the owner, with the consent of the governing body (or its authorized agent), may vacate the plat by a written instrument, which is recorded in the land records. If the owner proceeds by ordinance alone, there is a requirement of notice and public hearing, and that no facilities for which bonding was required were constructed during the prior five years. An aggrieved person may appeal the passage of the ordinance within 30 days in the local circuit

court. If there is no appeal, or the ordinance is upheld upon appeal, it may be (and title underwriters will likely require that it must be) recorded in the land records.

of the modern plat act) or in the adjoining land owner (the common law rule). If the original developer reserved the fee in the streets, the locality cannot re-convey the fee simple title; it can only abandon the public’s right to use the area for travel. The above statutes vacate the plats which created the streets. There is another authorized procedure for cities and towns which alters or vacates only the right of way. Rights of way may be altered or vacated on the motion of the locality or any other person. Again, notice and hearing is required. If the applicant is requesting alteration or vacation to accommodate expansion or development of an existing or proposed business, the approval may be conditioned upon commencement of the proposed expansion or development, and the statute prohibits recording the ordinance until such time as the condition is satisfied. Virginia Code § 15.2-2006. Another condition that may be imposed through the use of this section may limit its use, unless the applicant owns all the land adjoining the street to be vacated. The locality may require the purchase of the right of way to be vacated by the adjoining owner. If any abutting property owner does not pay for such owner’s fractional portion within one year, or other time period made a condition of the vacation or abandonment, of the local government action to vacate or abandon, then the vacation or abandonment shall be void as to any such property owner. Virginia Code § 15.2-2008. This could result in a continuing right to use the purportedly closed right of way by the non-paying owner, which may (or may not) interfere with the anticipated development. In some situations, a non-participating owner may have assigned its rights (and obligations) under the ordinance to the applicant owner. Since the applicant and municipality have multiple statutory options to reach the goal of closing, abandoning or vacating the street, the examiner should determine which option was used. As noted above, a proceeding under § 15.2-2272 reads as if the result is automatic; while a proceeding under § 15.2-2006 is clearly conditional. The ownership of the underlying fee simple title may factor into the examiner’s analysis as well. It is a better practice for the local government to identify the interest it holds, recite the authority for its action, and then convey it to the applicant by deed, rather than to make assumptions regarding the process, or the result of the process.

The execution and recordation of the ordinance of vacation shall operate to destroy the force and effect of the recording of the plat, or any portion thereof, so vacated, and to divest all public rights in and to the property and reinvest the owners, proprietors and trustees, if any, with the title to the streets, alleys, and easements for public passage and other public areas laid out or described in the plat. Virginia Code § 15.2-2271. In those cases where lots were sold, the general categories of options remain the same, although the details differ slightly. All the owners, with the consent of the governing body, may vacate the plat in writing. In cases involving drainage easements or street rights-of-way where the vacation does not impede or alter drainage or access for any lot owners other than those lot owners immediately adjoining or contiguous to the vacated area, the governing body shall only be required to obtain the signatures of the lot owners immediately adjoining or contiguous to the vacated area. Virginia Code § 15.2-2272. This section is the only one which specifically states it may be used whether or not the plat was recorded under the current statutory scheme. The procedures of § 15.2-2272 may also be used in connection with roads within the state secondary system, providing additional notices are sent to the Commonwealth Transportation Commissioner, and that the changes are conditions required by proffer accepted by the locality under §§ 15.2-2297 and 15.2-2298. Some localities record such proffers; others do not. The examiner may need to coordinate their efforts with those of the underwriters back in the office to determine if the transaction fits the statutory requirements. The recordation of the instrument as provided under provision 1 of § 15.2-2272 or of the ordinance as provided under provision 2 of § 15.2-2272 shall operate to destroy the force and effect of the recording of the plat or part thereof so vacated, and to vest fee simple title to the centerline of any streets, alleys or easements for public passage so vacated in the owners of abutting lots free and clear of any rights of the public or other owners of lots shown on the plat, but subject to the rights of the owners of any public utility installations which have been previously erected therein. If any street, alley or easement for public passage is located on the periphery of the plat, the title for the entire width thereof shall vest in the abutting lot owners. The fee simple title to any portion of the plat so vacated as was set apart for other public use shall be revested in the owners, proprietors and trustees, if any, who signed the statement required by § 15.2-2264 free and clear of any rights of public use in the same. Virginia Code § 15.2-2274. Underlying § 15.2-2274 is the assumption that the underlying fee simple title was vested in the locality (which is the result

In those communities where it is not physically possible to pass the Grey Poupon from one McMansion kitchen window to the next, roads were more likely to come into being through prescription or acquisition (either by deed or eminent domain). As noted in the last issue, the requirements of dedication and acceptance are more stringently applied in a rural setting, where express acceptance is the default rule. Burks Bros. of Va. v. Jones, 232 Va. 238 (1986). Sometimes the only evidence of acceptance in the land records is a recorded copy of a petition of a group of landowners along a certain roadway requesting the extension of the public right of way to serve their properties.

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 13

The State Transportation Commissioner has the general authority to convey residual parcels of land acquired in connection with a road project that are not needed. Virginia Code § 33.1-93, to be recodified as § 33.2-1010. The Virginia system of roadways has several subsystems over which the Commissioner has authority: the primary system (authority to convey is in Virginia Code § 33.1-149, to be recodified as § 33.2907), the secondary system (authority to abandon and transfer (to the applicant or to the local government) is in Virginia Code § 33.1-154, to be recodified as § 33.2-913), and the interstate system (roads may be transferred from the primary or secondary systems via § 33.1-52, to be recodified as § 33.2304; or transferred to the primary or secondary systems via § 33.1-53, to be recodified as § 33.2-305). Interstates, Limited Access Highways and Scenic Highways generally are part of the primary system. As noted above, the roads in the secondary system have “shared” authority with the local government. Roads not in the State Highway System or Secondary system are generally administered by the local government. Especially when a fee simple interest was acquired to establish the road, a deed from the Commonwealth, or the locality, should convey title to the land. Before the Commonwealth can convey a section of road there must be notice to the affected landowners, a meeting of the Transportation Commission, at which there is a finding (in writing) that the road is no longer necessary (§ 33.1-149 (as to primary system, to be recodified as § 33.2-907); § 33.1-154 (as to secondary system, to be recodified as § 33.2-913)), and an authorization to sell. Land in the secondary system may be transferred to the local government, whereupon it will remain a public road. The local government may convey sections of road no longer necessary following a similar notice, hearing and finding process (§33.1-165, to be recodified as § 33.2-924). In most cases, the transfer does not disturb any public utility facilities which were installed in the roadway, and the examiner (or underwriter) should be alert to the presence of such utilities as evidenced by depiction on an earlier plat, or reservation in the ordinance or resolution approving discontinuance and sale. Enough with the Ivory Tower foundational analysis. Let’s work through some hypotheticals to see how this is supposed to work. General Fact Pattern: Lots and streets shown on a platted subdivision back in the late 1800’s or early 1900’s that were never developed. The streets are not included in the City system nor maintained. Lot lines shift by sales and the only access is the “paper” street. See images for representative samples.

Image A1

Image B

Image B2

Specific facts: Pre-1900 recording. No owner’s consent. No governmental approval. No reservation of fee in the streets by developer. Possible resolution: Common law dedication of easement or right of passage. Because other parties own lots on plat, vacation of plat through city procedures, rather than consent of all lot owners, will probably be preferred by customer. If City disclaims Geronimo Development Corporation and its CaseFinder software. Ocean Island Inn v. Virginia Beach, 216 Va. 474, 220 S.E.2d 24 (1975) and Google Maps, www.maps.google.com, retrieved September 26, 2014. any acceptance in any form, still possible to obtain vacation Geronimo Development Corporation and its Casefinder software. Day v. Vaughn & Usilton, Inc., 183 Va. 168, 67 S.E. 2n 898 (195 and Google Maps, www.maps.google.com, retrieved September 26, 2014. ordinance, since the ordinance will not only abandon the public interest in the streets, if any (and the city is saying there isn’t), but also vacates boundaries shown on the plat (consolidating the streetDevelopment into adjoining lots). Best would be to Ohave 1 G eronimo Corporation and ipractice ts CaseFinder software. cean the Island Inn v. Virginia (1975) and Google aps, city www.maps.google.com, retrieved September 26, 2014. ordinance stateMthe never accepted the offer of dedication. 2 Geronimo Development Corporation and its Casefinder software. Day v. Vaughn & Usilton, In Upon vacation, the owners of lots adjoining the streets will own and Google Maps, www.maps.google.com, retrieved September 26, 2014. to the center of the street unencumbered by the public easement. Caveats: if city utilities were placed in the paper streets, and the City seeks to reserve the right to keep them in place, or compel a relocation, that starts to sound like partial acceptance, and City’s denial of acceptance is dubious. As can be seen, some of the streets shown on the plat were built, and partial acceptance by improvement, especially in an urban area, may constitute acceptance of the whole. Even if there was no public acceptance, other lot owners have private rights, so reconfigura1 2

1 Geronimo Development Corporation and its CaseFinder software. Ocean Island Inn v. Virginia Beach, 216 Va. 474, 220 S.E.2d 247 (1975) and Google Maps, www.maps. google.com, retrieved September 26, 2014. 2 Geronimo Development Corporation and its Casefinder software. Day v. Vaughn & Usilton, Inc., 183 Va. 168, 67 S.E. 2n 898 (1951) and Google Maps, www.maps.google. com, retrieved September 26, 2014.

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

tion should not deprive any other lot owner of their means of access to publicly maintained streets. Variation on a theme: Reservation of fee in the streets by original developer. Possible resolution: Rights of the public remain a public easement or right of passage. Need to run developer to current to see if it (or a successor – heirs or devisees of individual; another entity that succeeds to the title by reason of purchase or merger of the entity; a court appointed receiver; directors as trustees in dissolution; shareholders as successors by distribution of corporate assets after all debts were paid) ever conveyed the fee (to a subsequent developer3, to the locality, to an ingenious land salvager). If conveyed to locality, then you have the equivalent of a modern subdivision plat’s results, the fee simple and the public right are in the same hands. Likely the locality will want to proceed via §15.2-2006, and your customer will have to purchase the fee; ordinance of vacation won’t be released for recording until after payment is made. Best practice is to acquire a deed from the locality since a) they acquired by deed and b) less question about what was closed and conveyed (staff drafting ordinances are not always as precise as a title examiner would like). Variation on a theme: Post 1950 recording. Owner consent verbatim from statute. Prepared by licensed surveyor. Signed off by local government. Possible resolution: Fee in the streets and alleys was dedicated to local government. Approval signature constitutes written acceptance. Locality may want to proceed via §15.2-2006, and your customer will have to purchase the fee; ordinance of vacation won’t be released for recording until after payment is made. Locality may condition abandonment and sale upon reservation of easements for utilities installed in the former roadway. Best Practice suggestion: have the ordinance (and the deed prepared as a result) recite the enabling authority. Since the local government has two statutory options, which allow different results, a recital of the statutory authority should prevent concerns regarding potential claimants under the other statutory scheme. Variation on a theme: There’s an alley behind your lot and no one seems to know who owns it. Possible resolution: Throw out the back title you were given and prepare to run the chain back to the original developer. (well, the policy might be helpful, if it was an old one, and says something helpful like “Fee in the streets reserved in Deed Book ___, page ___.”) Apply the subdivision plat analysis given above to that original subdivision plat. What year was it recorded? What version of the plat act was applicable that year? Did the plat meet the statutory requirements? What actions were taken regarding other streets or alleys shown on the plat since it was

recorded? Were there other vacations/abandonments? What interest was described in those earlier actions? Has there been any litigation regarding title to any of the streets and alleys? Call underwriting counsel and discuss. Two other questions: These might come up, and are related to streets, but are not always subject to answer by reference to the subdivision act. An acreage property is sold over and over again and it’s discovered that the only means of access is a “lane” which the City shows as private. What do you do A property is sold and back in the chain, the description shows an easement to the property across someone’s property but the easement is left off the description in subsequent deeds. Possible resolution: The answer to both of these questions might be the same. The second question suggests a possible answer to the first. Grantee the owners in the chain of title. Was an easement granted to a prior owner? Was it made appurtenant to the land in question? Has the owner of the land in question continued to use the easement over the lane for access over time? Virginia Code § 55-50 states “Every deed conveying land shall be construed to include all buildings, privileges and appurtenances of every kind belonging to the lands therein embraced unless an exception therefor is made in the deed.” Silence, while not helpful to the examiner, is not the same as an exception. Suggest the addition of a paragraph to the deed, inserted just after the description of the land, that reads something like “together with the easement made appurtenant to the land described above by deed dated back in the mists of time and recorded on the papyrus rolls that predated our modern deed books.” If it is really that old, your underwriting counsel may want some verification that the servient owner knows and agrees that the continued use (and insurance thereof) is appropriate. One example demonstrating that might be that the deeds in the servient property chain of title contain a “subject to” paragraph describing the easement, even though the dominant owner has neglected to do so. Other possible resolutions, such as easements by necessity, which may have been created by implication, may need to be verified by a confirmation instrument or court order. Prescriptive easements (as noted in the first issue) grow into being over time, but until recognized by the judiciary, are generally not insurable. Examining the title to highways, streets and alleys may be the most difficult, onerous, time consuming work an examiner may be asked to perform. However, as developers look at “infill” development projects, and redevelopment of previously developed land, an ability to examine the land records and interpret the sometimes subtle hints in the older documents is a skill that may well define a significant difference between an ordinary searcher and an extraordinary examiner.

3 Be very careful. Some developers would convey to successor developers using the acreage perimeter description, less and except lots sold. That sort of description would include streets in which the fee had been reserved. Others would convey only the remaining lots. Unless accompanied by language conveying all residual interests, such a deed might leave the fee in the streets in the prior developer, which may or may not have been intended.

Read Part I in VLTA Examiner issue 21.1

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 15

Do it Yourself Marketing

On TRID and Marketing… While the two actually have nothing in common, it’s likely that your compliance efforts are forcing you to be thriftier with your marketing. Here are a few suggestions for keeping it effective. Let me begin by assuring you that this article will not actually be about the TILARESPA Integrated Disclosure (TRID) rule. I’m not sure there’s much left to write about it. Certainly not from a marketing standpoint. However, TRID and the significant increase of general regulatory scrutiny being placed on the title industry probably are forcing you to put your dollars toward compliance efforts now more than ever before. This is probably not helpful to your marketing budget, especially at a time when some lenders have begun to consolidate their vendor networks to mitigate risk. BRIAN RIEGER This doesn’t mean your marketPrincipal ing efforts need to be shut down. True Impact Communications Chances are pretty good that you can keep your message in front of prospects and customers with the tools you already have. Before you dash out to purchase a sponsorship for the upcoming community event, however, take a quick marketing inventory. If you don’t have an in-house marketing professional, find a consultant or agency. Take stock of what you do well; what your clients want and, most important, what they want from you. To market anything, you need a target (whether existing customers or prospects), a vehicle to get the message to that target, and a message that will make the target want to react in a positive way (such as buying your product). I’m already assuming you have a product or service to take to the market. You probably know your target. Likely some combination of banks and lenders, Realtors, or perhaps title agencies looking for new technology. But do you know how to reach them?

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

List building is one of the most fundamental elements of marketing communications. I’m willing to bet that more than a few of you have salespeople who track prospects. You may track them yourself. Whether it’s in Excel or your favorite CRM, now’s the time to gather that list together. No need for expensive list rentals or purchases when you’re watching costs. Vehicles? Simple—e-mail. No, it’s not perfect. No, you shouldn’t plan on becoming a SPAM cannon. That won’t help you win new business anyway. But it’s cheap. Most CRMs allow you to send group messages. Even good-old fashioned Outlook will work in a pinch. And don’t worry too much about your numbers. Unless your list is under 25, it’s worth using (25, of course, being an arbitrary number of my choosing.) Oh, and don’t include all the names on your list in the “To” or the “CC” line. Send the e-mail to yourself and blind copy your prospects. They have the right to a little privacy, too. The look? Nothing fancy. You can use a simple text message. You don’t need fancy HTML images depicting your favorite scene from Star Wars as an analogy to life with TRID. Just keep it short, concise and well-written. I repeat— well-written. No spelling mistakes, no grammatical mistakes. Have it proofread repeatedly before you send it. The most important part of your homemade e-mail campaign? As with any marketing, it’s your execution. That means a few things must be sewn into your efforts: 1. Your message needs to provide some value to your audience. We all get way too many e-mails every day. We delete the badlywritten ones and the obviously irrelevant ones first. Put yourself in the shoes of your prospect as you write your message. If you

have trouble being objective about your message, ask your attorney or staff counsel to help. For all the flaws common to attorneys (I can say this as one myself), they’re very good at seeing mistakes and blemishes. Keep your message simple and short.

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2. Give your prospect an easy road to action. Links, links, links. Ever get an e-mail that actually interested you, only to find out there was no link to get to a website, or worse, no website? A phone number is not good enough (although you should certainly include one)—give them a really easy way to do what you want with the e-mail (click to buy; click to contact a salesperson, etc.).

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3. Give your prospect an easy way to get off of your e-mail list, and pay close attention to those that “unsubscribe.” It’s not just good marketing—it’s federal law. A simple message at the bottom of your e-mail with the physical address of your company (again, it’s the law) and something to the effect of “If you don’t wish to receive similar e-mails from us in the future, please click here”—linking of course to your IT team or web person’s e-mail. And pay close attention. If someone “unsubscribes,” track it, and get them off the list before you send another e-mail. If you’re using an e-mail service such as Constant Contact or Mail Chimp, they’ll actually do this for you.

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4. Beware of your frequency. This one’s simple—more is NOT better. One is not enough. Make sure your messages vary (don’t look too much alike) and give the prospect some time to breathe after you send one. Once a week would be an aggressive start. Maybe too aggressive. You can even go once every couple of weeks. But if you do start a campaign, finish it. It often takes several “impressions” (times a prospect sees your message) to cause someone to act. So if you’re going to send one e-mail, be sure you send at least 3 or 4. Just don’t do it all the same week.

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About the Author

BRIAN RIEGER is a reformed litigator with twelve years of public relations and marketing communications experience. He has served the title and settlement services industry for ten years, providing marketing and PR counsel for mortgage lenders, national underwriters, commercial real estate firms, technology developers, title agencies and vendor management companies. He is the principal of True Impact Communications, a national marketing communications and public relations consultancy serving clients of all sizes across the mortgage, title and settlement services industry. He has been published in ALTA’s Title News, TAVMA’s quarterly newsletter and Scotsman Guide, and has ghost-written articles published in Mortgage Banking, HousingWire, Origination News, Title News, Secondary Marketing Executive and more. Brian has presented on marketing and public relations topics at the TAVMA annual conference, ALTA Annual Convention, ALTA Business Strategies Conference, The National Settlement Services Summit, the Ohio Land Title Association Annual Convention and several local seminars.

Above all, as with any marketing—LISTEN. You may get a few responses making suggestions. You may not. You may get a few angry responses. Look for the bigger trend—did sales spike? Did half of your recipients “unsubscribe?” You can get some feedback even when nobody actually writes back to you. Remember also that, in this day and age, many of the e-mails you send may not even reach the in-box of your intended recipient. Spam filters, changing e-mails and vigilant ISPs can all see to this. If you’re using a large list (over 1,000), it’s probably safe to assume that 50% or less of your audience will ever get the e-mail. But that doesn’t mean it’s not worth doing. I’m going to leave metrics systems for another day. Yes, they’re quite important. And, easy to track with fairly simple systems. But for now, get cracking on your message and get to work. Your new clients are waiting!

You can learn more about Brian or read his blog on similar topics at www.trueimpactcommunications.com. You can contact him at 330-348-1678 or Brian@TrueImpactCommunications.com.

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 17

Crossword

TRID Spelled Backward is DIRT TRID Spelled Backward is DIRT Across 1. What do you do with money not claimed each year? 4. What if the abbreviation of Tile/Respa Intergrated Duscosure? 6. What replaces the GFE? 7. What is a neutral third party called who holds funds until conditions are met? 10. What are variations now called? 12. How many trigger items cause a re-disclosure?

Down 2. Cordray’s Office 3. Person who issues title insurance is called? 5. Closing a deal is called? 8. What is the name now for a purchaser? 9. What is the lender now called? 11. What is the abbreviation for Nonpublic Personal Information?

Across

Down

1. What do you do with money not claimed each year?

2. Cordray’s Office

4. What if the abbreviation of Tile/Respa Intergrated Duscosure?

5. Closing a deal is called?

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6. What replaces the GFE?

This interactive digital crossword is available to play online. Click here to play.

3. Person who issues title insurance is called?

8. What is the name that now fortitle a purchaser? VLTA is shopping and everyone likes a discount! We know industry professionals do business with vendors they trust. If you know of 9. What is the lender now called? a vendor who excels when it comes to service and11.quality – let us know. We would like the opportunity to negotiate a discount for all our members What is the abbreviation for Nonpublic Personal 10. What are variations now called? Information? statewide. 12. How many trigger items cause a re-disclosure? A sampling of Member Discount participants are below. For more information, please email us directly. If you are a Member, simply click on the logo below to be redirected to the Member Discount offer. (Member login required.) Learn more about this month’s featured partner at www.vlta.org/member-discounts 7. What is a neutral third party called who holds funds until conditions are met?

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

Tales from the Table By now, we all have had at least one borrower sit down at the closing table and ask us why they need to purchase owner’s title insurance since the CD says that it is optional. This story may help answer that question. This past May, I had a settlement for the closing of a new home scheduled for the day after Memorial Day. By some strange circumstance, we had the loan documents and the package was completely ready to close on the previous Thursday. The purchaser knew this and asked if he could bring his Cashier’s Check in on Friday morning. I said sure, so he arrived in the office the next morning to deliver his check. While he was in the office, he asked me if the owner’s title insurance listed on the settlement statement was for the policy that would cover things ERIC A. NESHEIM that could happen in the future. Title One Settlement I assured him that it was and he Group, LLC left. When he arrived at his closing on Tuesday, he again asked if his owner’s title policy would cover him for future events because he wanted to be sure that it did. Again, I assured him that it would. I did not want to pry, so I did not ask him why. During the settlement, however, as we are talking, it comes out that while he owned his previous house, someone had obtained a fake driver’s license in his name, gone to a local bank, and taken out a home equity loan against his house. The criminal promptly drew on the line of credit to its limit and was never heard from again. The first my customer heard of it was when he received a letter from the bank that he was delinquent on the loan and was facing foreclosure if he did not pay. I was interested to read the article by Palma Collins in the last Examiner about the various ways that criminals are using computers to steal money from our escrow accounts. We ran into that in a peripheral way some months ago. We were scheduled to do the home purchase for a buyer who was closing on the sale of her

existing home at another settlement company. The other company would disburse the sales proceeds directly to us so that the funds could be used towards the purchase of the new home. We emailed our wiring instructions to the purchaser and to the other settlement company. On the day the other settlement company was scheduled to disburse, they called us to verify the wire instructions. The reason they did so was because they had received one set of instructions from us, and a different set from the customer and they wanted to confirm which was correct. They sent us a copy of what they received from the customer and it was our letterhead with different banking information filled in. Thank goodness they called. It turns out that the customer’s email had been hacked and someone had substituted the banking information. This stuff really does happen. Enough of the real life and scary stories, for this issue I will conclude with a funny one: A few years ago, I went to my borrowers’ home to close a refinance. We are going through the documents and everything is proceeding nicely. When I get to the Deed of Trust, I tell them that this is the document that gives the lender a security interest in the house. I then tell them that this means that the lender ultimately has the right to foreclose if the borrowers fail to pay the loan. At this point, their eight year old daughter, who was playing in the next room, runs in and exclaims: “Are we going to lose the house?”

About the Author

ERIC A. NESHEIM is Managing Attorney of Title One Settlement Group, LLC in Chantilly. He started his career searching titles in 1985 in Cook County, Illinois. He received his law degree from George Mason University School of Law in 1990 and is licensed to practice law in Virginia, Maryland, and The District of Columbia.

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 19

Providing Full Service in Multi-State Transactions – Challenges, Considerations and Transaction Management Real estate transactions commonly involve a distinct set of challenges and timeframes. Settlement companies are staffed by experienced licensed professionals to conduct and facilitate those transactions within that particular jurisdiction. State-based licensing processes originated decades ago and those licensee obligations continually evolve and expand as industry professionals assist clients with greater pressure to perform services for clients not only at a fast pace and cost-effectively, but also with the highest specialized skill levels. These transactions are not for the generalist. Multi-state transactions do not come up with the same frequency as single-site or residential transactions, being prepared despite a larger scope and tighter turn-times with a strong infrastructure is the key to being prepared to act, and creates the greatest likelihood for success. Information techby nology enables collecting and Maria Deligiorgis, Esq. conveying information with Mid-Atlantic Regional President improved speed and efficiency World Wide Land Transfer across all boundaries. A “new” approach to multi-state transactions is in fact built on strong fundamentals of putting together any real estate transaction. The typical multi-state commercial client or developer will likely have access to many resources, and the resource of time is always in short supply. The clients need the selected settlement company to act with prompt attention and error-free execution. A successful multi-state transaction requires

decisive expertise in each of those jurisdictions as inevitably obstacles and challenges will present which require solutions. Risk is inherent in all real estate transactions and projects — particularly in multi-state transactions — a settlement company successfully navigating a closing must manage the transaction with an aim to diminish and eliminate risk and minimize delays popping up at a most inopportune time. Ultimately the settlement company is a critical member of the deal-making and transactional team. The goal is to manage information and anticipate risk and maximize success in the consummation of the transaction, whether there are 6 or 600 parcels in 3 or 43 states. n Experienced Title Teams: Our firm’s experience relies on leadership by our most experienced title officers supported by exceptional production team members. Expertise in each jurisdiction is necessary – there is no way around it. Local and state-specific due diligence, abstract and title review will be a critical factor in assembling the team of professionals. Any project involving more than one parcel will likely also include unexpected complex issues whether they are foreclosure, environmental, bankruptcy, or estates. Issues such as these require fluency in core title resolution plans. Maria Deligiorgis is the Mid-Atlantic Regional President for World Wide Land Transfer, Additionally, local considerations for recorda Pennsylvania-based national title agency. Deligiorgis has concentrated her career to able documents including deed form, font size, date in the real estate and title insurance industries, with extensive experience in local paper size, margins. etc., are no less important mid-sized, regional and large national companies. An active attorney, Maria has execuin assuring title is conveyed as intended by the tive level experience developing, implementing and managing title insurance, closing parties. and settlement operations, production and business operations. She earned her JD n Custom-Built Website Portal with Search from American University Washington College of Law and Master’s and Bachelor’s degrees from the University of Iowa. Feature: Within a few days after receiving the

About the Author

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

title order, a sharepoint or subsite to our website is created which supports true collaboration and interaction rather than one-way presentations. This venue allows files to be imported from various locations, including websites and folders. The subsite will have administrator, author and browsing permission levels as well as search function. Therefore, in addition to the title team members, the buyer and seller and their counsel, the lender and their representatives will all have access to the subsite to track the transaction both before and after closing. This is especially useful by way of example in the post-closing phase, where the subsite tracks mortgage recording information for the benefit the members. n

Parcel Status and Title Status Report: Develop and maintain a simple spreadsheet listing all addresses and tax identification numbers, by state, parcel and lot number, and any other particulars allowing users to track when searches are ordered and completed; track and view commitments; and review relevant documents. The report also shows parcels that have title issues and tracks title resolution. The report will balance the title status among the jurisdictions, including identifying and accommodating the type of priority recording statute (i.e., race, race-notice, etc.) and whether the jurisdiction permits e-recording.

Parcel Structure and Tenant Status: Each parcel will be tracked additionally for structural condition of buildings; plans, permits, certifications, equipment condition; surveys; zoning letters; utilities, insurance, etc. will be tracked here as well as tenant and sub-tenant status including lease copies, security deposits, CAM analysis and service contracts

Closing Management: This area is the depository for all transactional documents. Often, numerous closing officers are deployed and managed over one or more days in the various jurisdictions, also requiring the compilation and organization of hundreds of documents. Again, local regulations and other considerations will mandate transferring title properly across many states.

Many times during multi-state closings, I have presided at the settlement table for several hours at an absolute standstill as buyer’s and seller’s counsel finalize negotiations and ultimately compromise on 500+ page purchase agreements. Erudite advice, knowledge and guidance at the table is required as final negotiations among the parties endeavor to reach agreement on which party to the transaction will pay for certain services. Across states, the local practice on which party customarily pays for certain services including title insurance, surveys, title examination, recording taxes among others becomes a hot topic. Closing multi-state and multi-site real estate transactions necessarily involves a structure to manage the transaction. Through a structured, managed approach to the transaction, the lack of standardization across jurisdictions will not seem so overwhelming. In Virginia it is often said: “title is title” and the reason our clients chose one professional over the other is based on relationships, knowledge and experiences we have. The right professionals, and a transactional plan maximizing electronic technology assures that our performance will successfully meet our clients’ transactional needs with practical professional service.

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VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 21

TUTE: The Unknown Title Examiner Tute: I’ve been asked to examine the title to a parcel of property off in the back woods. It sits well off any paved road, and appears to be accessed only by a Depression era road that may have been built by the federal government, and maintained since then by either the county or the park service. What do I need to find in order to convince corporate’s underwriting counsel this is insurable? Stuck in the Valley (again)

Questions & Answers For Title Examiners And Underwriters Title Tips by Tute is a regular feature in the VLTA Examiner. Tute offers interesting and informative questions and answers pertinent to title examiners and underwriters. Tute may be reached at www.tute.us. We encourage our readers to submit their questions or comments to Tute c/o the VLTA Examiner.

Dear Stuck: What have you got? Tute’s experience with underwriting counsel suggests the more stuff you have, the better your chances . . . especially good stuff. And what is good stuff? Well, it depends. Sometimes stuff you think is great bops you right in the schnozz. Sometimes stuff that looks like it will stop you in your tracks is exactly what you need. In the classic strategy of the bewildered, I throw as much stuff as I can at counsel . . . and see what sticks. Let’s take a look at two Virginia cases, both involving remote properties, like yours; both involving a Civilian Conservation Corps road, like yours; and both involving a landowner who wanted to block the road, like you want to avoid. In one case, the court said no; in the other they said “shut ‘er down.” What was the difference between Dykes, et al, v. Friends of the C.C.C. Road, 283 Va. 306, 720 S.E.2d 537 (2012), and Burks Brothers of Virginia, Inc., et al., v. Jones, et al, 232 Va. 238, 349 S.E.2d 135 (1986) besides 26 years? If the property you are dealing with happens to be on one of those two roads, you can try to impress counsel with legal-ese like res judicata and collateral estoppel. It probably won’t work, but it will suggest you’ve done some homework on the subject. From an examination perspective, the big difference between the two cases is the party wanting to use the CCC road. In Burks Brothers, it was people who lived on the road and needed it to get to and from their property. In Dykes, it was an organization, asserting a claim on behalf of the public at large. That made, in my humble opinion as a non-litigious sort of examiner, a huge difference. The evidence in Burks Brothers convinced the court that the property owners had used the CCC road for more than 20 years. Those landowners’ uses were their own, and not as members of the general public (that had to do with an element of

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“exclusivity” required to establish a prescriptive easement). There was no evidence of implied (or explicit) dedication to the public, and no evidence of acceptance (there is lots of case law that acceptance has to be formal, especially in rural jurisdictions, and the CCC and the forest service are not “road officials” within the meaning of the Byrd Act). Private rights to use the road had been explicitly reserved in litigation 20 years earlier when a portion of what had been a public road (subsequently relocated) was abandoned. In Dykes, the Friends were arguing that the long public use of the CCC road made it a public road. The court disagreed, noting that there was no formal acceptance of any dedication by the county, and the private landowners adjoining the road and needing it for access were not denied the use. The use by the sheriff, county surveyor and volunteer fire department was not acceptance – and it went without saying that they were not “road officials.” The evidence showed their use, and that of adjoining landowners, was permissive by reason of keys given them by the owner. Private road; private rights; rights labeled by the court as a license. References in prior case law to the conversion of a private road into a public road by prescription were in the context of using the elements of prescription to evidence an implied dedication. Those gates remained locked as to the public, until such time as the public was willing to purchase the road for public use. So, what do you need to find to convince counsel? History might help. So might imagination. Are there private easements (“together with”) included in property descriptions for other owners along the road? Are there affidavits recorded, perhaps from an earlier dispute, that the use as a road has gone on since time immemorial (“ancient beyond memory or record”; “time out of mind”; “a time before legal history and beyond legal memory”; “time whereof the memory of man runneth not to the contrary”)?

Are there old maps showing the road? How old? How designated? Was it part of a longer road that went somewhere a public right of way was customary or required? Did it serve all the owners at the time the map was prepared (How will you be able to tell if there is no county tax map to give you the “big picture”?) Was your road ever the subject of a petition to the local government by the landowners for maintenance? Was it, in fact, maintained by the local government or VDOT? Was it assigned a route number (a more modern convention)? Was it described as the “road from one town to another town” (as opposed to the “road leading to the Jones Place”)? Has the locality installed utilities or traffic control devices within the right of way without obtaining permission from adjoining owners? Having no doubt depressed you with this horrible burden of proof, perhaps the following song you will never hear at the old time folk song festival may entertain you while you work on the title:

The old dirt road, she ain’t what she used to be Ain’t what she used to be, ain’t what she used to be The old dirt road, she aint what she used to be Many long years ago.

The old dirt road, was used by Mr. Lee Then by Hank McGee, now by you and me The old dirt road wasn’t very pretty Many long years ago

The old dirt road, she went by the apple tree, ‘ Round the cemetery, over the mountain peak The old dirt road, she crossed by the little creek Many long years ago.

The old dirt road, she ain’t what she used to be Ain’t what she used to be, ain’t what she used to be The old dirt road, she aint what she used to be Many long years ago.

Title Tips & Trivia TITLE TIPS & TRIVIA is a collaborative effort with contributions from Title Professionals all over Virginia. We want your comments and contributions. Send us your Title Tips & Trivia for inclusion in this ongoing column. All submissions will remain anonymous. Send your emails to jrutledge@ltr.inc.com with the subject matter line on your email to read Title Tips & Trivia.

A question that is often asked is how does the commercial acreage differ from the residential acreage in the process of title research. Is there really any difference between the two? The answer is categorically yes, the Commercial Acreage Search is a whole different knowledge base and perspective. The differences lie in the meticulous attention to detail, the advanced knowledge required and the familiarity with commercial document types and situations. Commercial acreage searches, whether it is a parcel in a shopping center or a corporate professional building, have inherent within them the existence of leasehold interests and often the condition of severed improvements. Easements are often defined and operate differently, such as with cross-collateral easements, shared access and utility rights of way for the interconnected parcels.

As the title examiner searches backwards in time, creating the chain of title for the property being searched, it can be difficult to determine the parent tract parcels that need to be searched. This is when the title examiners’ in-depth knowledge of acreage metes and bounds and survey methods is mandatory. In order to make the correct determination, it is essential that the title examiner compare the metes and bounds with the plats found of record. The title examiner should also compare these with the available tax maps, paying attention to how the surrounding parcels have changed over time. The Commercial Acreage Challenge: here is a link to an excellent example of the title examiners’ dilemma in the determination of the parent acreage tract Deeds. Review the attached documents along with the following facts and let us know what you determine to be the Parent Tract Tax Map #’s, then email a description of your findings to vlta@vlta.com and take the challenge…

Title Research Facts: Current parcel to search: TM# 23-A-141K Parent Tract TM#(s): (for you to decide) Deeds to Review, Tax Maps, Plats: View the exercise file

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VLTA Certification

Not the New Kid on the Block? In August of 2012, Virginia Land Title Association launched two VLTA sponsored certification educational courses, the Virginia Certified Title Examiner (VCTE) and the Virginia Certified Settlement Agent (VCTSA). The VLTA was applauded for its progressive approach to education, with the requisite that not only Title Settlement Agents but also Title Examiners be certified, in order to practice in Virginia. Let’s first take a look at the VLTA VCTE Course and in future issues we will cover other types of certification. In August of 2012, Virginia Land Title Association launched two VLTA sponsored certification educational courses, the Virginia Certified Title Examiner (VCTE) and the Virginia Certified Settlement Agent (VCTSA). The VLTA was applauded for its progressive approach to education, with the requisite that not only Title Settlement Agents but also Title Examiners be certified, in order to practice in Virginia. Let’s first take a look at the VLTA VCTE Course and in future issues we will cover other types of certification. In Virginia, there has never been a requirement for registration, certification, or licensure for Title Examiners. For those not familiar with the designation, the VCTE program is a basic certification education course for Title Examiners, which established the requirement for a basic educational standard for the profession in Virginia. In order to achieve certification, the student must complete 16 hours of education, followed by a comprehensive VLTA VCTE Examination. To date (as of August 2015), over 400 Virginia abstracters have taken the course, and over 350 have passed the VLTA VCTE Exam and earned the designation of VCTE. The implementation of the VCTE program gained attention from many industry professionals, but is it really all that progressive? In 1928, the American Land Title Association (ALTA) proposed a Model Abstracter’s Licensing Act. Their proposal was intended to spark a nationwide trend within the industry to elevate the professional standards of abstracters; to improve the product offered to the customer; and to reduce claims through better title searching and examination. By 1929, seven states (Colorado, Kansas, Missouri, Montana, Nebraska, Oregon, and South Dakota) had introduced legislation to enact abstracter regulation in their jurisdiction. In 1963, Willard Eckhardt provided an exhaustive review of abstracter laws across the country. Eckhardt found that at the time, 17 states had attempted at least some minimum form of licensure, certification, or registration of abstracters. However, in the past 50 years, NAIC reports show that only five states now require licensure of abstracters; and only three additional states offer certification programs.

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CURRENT LICENSING OR REGULATION Arkansas In Arkansas, those conducting an examination of title for “marketability of title or insurability of title” must be licensed; abstracter licenses are covered under a broad and comprehensive title insurance agent license. Attorneys are exempted. Read more.

Florida According to the NAIC report (2010), “Abstracters are not licensed in Florida, although we do require anyone performing a title search to have errors and omission insurance. We enforce this by requiring our licensees to only accept search results from entities that are insured.” Florida is one of a handful of states offering certification and education for Examiners.

Kansas In Kansas, Abstracters are required to pass an examination, pay an annual fee of $75 to maintain a license, and submit proof of bonding to an Abstractor’s Board. Read more. Kansas law dates back to ALTA’s Model Abstracter’s License Act of 1928.

Nebraska In Nebraska, under §76-542, any persons “preparing written reports of title to real property” must pass an examination and apply for licensure. Nebraska’s Supreme Court handed down a final decision on March 18, 2005 requiring such licensure; application fees are currently set at $150 per applicant.

Oklahoma In Oklahoma, any individual in the business of conducting title abstracts, or actively engaged in the construction of a title plant must be licensed as a title abstracter. Oklahoma law dates back to ALTA’s Model Abstracter’s License Act of 1928. Read more.

Missouri In Missouri, the legislature failed to enact regulation of title abstracting on at least six occasions; in 1929, 1931, 1945, 1947, 1957, and 1959, bills based on ALTA’s Model Title Abstracter’s License act of 1928 were introduced, and rejected by the legislature. Many attempts failed to exit committee due to a lack of

provisions exempting attorneys. Legislative efforts were eventually abandoned due to the rift the argument generated within the Missouri Land Title Association; indeed, the issue nearly destroyed the Missouri Association (see Eckhardt, p. 33).

notice is constructive notice. Intestate succession is the same across the Commonwealth. Probate, while nuanced, is effectively similar no matter the jurisdiction. There is a common thread, and the Title Examiner must understand the fundamental process of the transfer of real property in order to produce an accurate work product. Perfecting the skill of Title Examination, as a master of real property law, regardless of the enjoinder against offering advice, is the goal of any true professional Title Examiner.

Montana Montana was one of the original states to pass and enforce an abstracter’s licensing provision. However, under current statutes, Montana abstracters are completely unlicensed and unregulated in the state.

The burden of the title insurance underwriter/ agent

South Dakota

What happens when a Title Examiner is not well versed in the formal process of abstracting? Surely, the title insurance agent/ underwriter must pick up the slack. In the new era of third party vetting under CFPB regulations, the underwriter must ensure that products offered by outside providers are of appropriate quality to remain compliant and competitive. It is, indeed, then the agent’s cross to bear. In the absence of formal training of examiners/abstracters, the agent must be yet more diligent in their work, slowing down an already onerous process, and placing more risk on the shoulders of the title agent. The Virginia Land Title Association maintains that the professional designations offered for both Title Examiners (VCTE) and Title Settlement Agents (VCTSA) are a boon to agents looking to streamline and strengthen their business model. The agent’s voice should rise up and demand certification for the advancement of the industry. Agents should be clamoring to enact legislation to relieve them of the risk and burden that untrained examiners and closers pose.

Under §20:36, South Dakota abstracters must register and pass an examination to conduct title examinations in South Dakota. Fee schedules for title examinations are strictly regulated by South Dakota law (read more).

Wisconsin The Wisconsin Land Title Association offers Title Examiner certification courses.

Independent Entities There are at least two national associations offering certification for title examiners, though these programs are offered on a voluntary basis, and appear to cover little, if any, local information. n Association of Title Examiners – Certification Program n NALTEA – Certification Program

View Abstracting Guidelines by State (NAIC, 2010)

Where are we now?

Clearly, there is little consensus among the states that abstracting requires specialized education, certification, and/or licensure. With just 16% of states offering education to abstracters, it would appear that on a national level, the industry no longer approaches abstracting as a profession. Despite the publication of the 1928 Model Abstracter’s License Act, in 1941, ALTA revised its position on licensing of abstracters to one of neutrality. In the face of opposition from attorneys, examiners, and legislators, ALTA and many state land title associations found the dissent untenable to a productive association environment.

The Virginia Bureau of Insurance has again declined to support licensure of Title Examiners; in the absence of the underwriters’ unwillingness to appoint title examiners, the BOI has made it clear that this is not “an insurance issue.” Even underwriters who have long been supportive of the programs have cooled their requirements for certification. Yet the necessity for the Certification of Title Examiners remains. It now rests on the shoulders of agents to require a professional standard; to demand excellence; and to cover all their CFPB bases. I leave you with the words of Willard Eckhardt, who in 1963 had wisdom and insight beyond his time: “To the extent that state title associations under the leadership of the most competent and best equipped local abstracters are unable to ‘coerce’ the incompetent and poorly equipped abstracters to raise themselves to minimum standards on a ‘voluntary’ basis, advancement of the industry itself and protection of the public can be achieved only through legislation.”

Virginia is unique We are all well aware of the idiosyncrasies of Virginia. No two jurisdictions are alike. In one courthouse, you may find The Estate of Margaret Lowe indexed under “E”. In another, you may find that recordings are kept in a box for 2 months prior to indexing in a system labeled as “current”. In yet another, you may find that e-recordings are not accepted after 3pm on Fridays. Local knowledge plays a key role in Virginia operations. But is it enough to rely on local providers, whose knowledge has been gained primarily through on-the-job training to provide an accurate and thorough title examination? All these unique differences notwithstanding, the law is the law. Constructive

Learn more To learn more about Virginia Land Title Association’s VCTE and VCTSA programs, click here or contact VLTA at (800) 9298730. We insure…this land is your land. .

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org 25

Virginia Land Title Institute The Virginia Land Title Institute is a unique online training portal designed exclusively for Virginia title insurance professionals. The Virginia Land Title

Institute is the proud host of over 80 hours of Continuing Education for Title Insurance Agents, Attorneys, Title Examiners and Title Settlement Agents. Be sure to inquire about all-inclusive VLTA membership to access our complete catalog for free! Visit the Virginia Land Title Institute today!

Title Insurance Pre-Licensing Course The Title Insurance Pre-Licensing course is likely your first step in a new career. Whether you are a seasoned industry professional, or a fresh face, we welcome you to our class. VLTA provides concierge service to all students. We walk you through every step of the licensing process, and even help you locate resources to start your business, grow your business, and more. We are connected with every aspect of title insurance — no other provider can help you get started like VLTA. There’s more? Our instructor is an industry veteran, both an attorney and an underwriter, and works hard to prepare you for success on your exam. With Kevin Pogoda, you’ll enjoy a riotous 2 days of class — we keep it fun! You’ll also benefit from the broad and hands-on experience of a fabulous instructor. Kevin Pogoda is a nationally reknown speaker who has engaged audiences of all kinds with his humorous and thrilling style. More still? With VLTA, you’ll have access to ongoing continuing education resources, the support of a caring home office, and the boost of our statewide network of professionals.

If you have questions, we have answers. And most importantly… our students succeed! With exam-focused preparation, our students boast the highest pass rate of any provider in Virginia. VLTA is your best choice for success.

Course Details The 16-Hour Course is delivered in eight 2-hour sessions, each complete with a narrative PowerPoint explaining each concept covered in the outline as well as learning checks to ensure you are progressing with the knowledge you need to pass the exam. At the end of the course, you will have access to study questions to prepare for the exam. Once you have successfully completed all portions of the class, you will be able to print the required course completion paperwork so that you can sit for the exam. You are also welcome to contact our instructor at any time during the course to ask questions one on one — YES! That’s right! You’ll have live instructor interaction at your disposal throughout the course by phone or email. No other course in Virginia offers such a vast array of resources to students at such a great price! Register online at the Virginia Land Title Institute.

Virginia Certified Title Examiner Course The Virginia Certified Title Examiner (VCTE) Course by Julie Ann Rutledge, Instructor, is a basic introduction to title examination in Virginia. Covering a broad base of Virginia laws and statutes related to title examination, processes, and basic underwriting, the course prepares a new examiner for training in the field and ensures that existing examiners have a comprehensive understanding of basic title examination. This course is appropriate for new title examiners, 26

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org

paralegals, attorneys, and title settlement agents. The VCTE Course was established in August 2012, to create a basic foundation and to provide structured education on the basic title examination principles, practices and standards for title examination education in Virginia. The goal was also to create meaningful education of title search and examination fundamentals in order to provide a platform for continuing education to ensure that certified title examiners remain current on industry and regulatory changes in Virginia. Register online at the Virginia Land Title Institute.

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VLTA membership comes with important benefits Education

Virginia Land Title Association is the only provider of the full suite of Virginia-specific land title education programs. VLTA offers online prelicensing education; the Virginia Certified Title Settlement Agent ™ course; the Virginia Certified Title Examiner ™ course; continuing education; continuing legal education; and certification continuing education both live and online. Earn your mandatory 4 hours of non-agency sponsored credits while engaging with national and local experts. VLTA members have access to 100% FREE online continuing education, 50% off licensure and certification courses; free regional education events; and up to 50% off our Annual Convention.

Advocacy

Virginia Land Title Association supports your business and the industry through advocacy and direct lobbying. Each year, we review and track dozens of proposed bills; develop relationships with key legislators; interact directly with entities such as the Housing Commission, the Virginia Insurance Continuing Education Board, the Virginia Court Clerks Association, and the Virginia State Bar; offer members engagement support through TAN; and propose and support VLTA-developed legislation. Our legislative committee is an active and thriving committee dedicated to bolstering the interests of our industry.

News, Updates, and Trainings

As a member of VLTA, you will be part of a community of professionals in the know. VLTA keeps you up to date on industry news; trains you for upcoming regulatory changes; and helps you stay in business with targeted workshops and webinars. A recent industry survey showed that as of May 14, 2015, roughly 50% of VLTA members were prepared to undergo Best Practices certification, compared to roughly 15% of the industry at large. VLTA members are prepared to compete in this ever-changing marketplace. Are you? Standard Membership

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25% off online continuing education courses for ALL members of your company

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FREE online continuing education for all members of your company

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Up to 15% off VLTA’s Annual Convention

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FREE attendance at up to 3 regional events each year

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Choose Your Level of Benefits

This year, Virginia Land Title Association is offering a tiered member benefits program. Companies can choose their level of benefits based on their needs. We encourage all members to consider the all-inclusive membership model. For just a few dollars more each year, members will have access to our new, world-class online continuing education portal, deep discounts on Convention, and free attendance at regional events. Who could ask for more?

RENEW YOUR MEMBERSHIP JOIN VLTA 28

VLTA EXAMINER volume 22.1, spring 2016 www.VLTA.org