Title Insurance: An American Tradition

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TITLE INSURANCE: AN AMERICAN TRADITION* see time line

     In the midst of the nation's centennial celebration in 1876, the direct corporate predecessor of Commonwealth Land Title Insurance Company founded the title insurance industry. Since then, title insurance has become a part of the American ideals of progress and endurance. And all the while, Commonwealth has remained at the forefront of the very industry it founded.
     In 1990, Commonwealth joined forces with Transamerica Title Insurance Company (now Transnation Title Company), which has its own proud history that dates back to 1910. Today just like yesterday, Commonwealth and Transnation respond with foresight to the changing needs of the real estate community.

The birth of an industry
     Like many other industries, title insurance was born of necessity - in this case, the need to protect owners of real estate from challenges to their property titles. During the first century of our nation's history, Americans became all too familiar with land title troubles. In real estate transactions, the name of the game was caveat emptor - "let the buyer beware." The ultimate responsibility for verifying the validity of a land title was the burden of the buyer. As a result, many lost their investments.
     It wasn't until 1868 that the problem drew public attention in the Pennsylvania Supreme Court case of Watson v. Muirhead. After losing his investment at a sheriff's sale as a result of an outstanding prior lien, Muirhead sued his conveyancer. The conveyancer had uncovered the lien, but represented the title as clear after an attorney advised that the lien was not valid.
     The court eventually ruled that conveyancers and attorneys could not be held liable for erroneous opinions based on professional standards of evaluation, and Muirhead lost his investment. As a result of the case, it became clear that something was needed to protect innocent investors from similar hazards and to encourage land development and American growth.
     On March 28, 1876, a group of conveyancers led by Joshua H. Morris met in a small office opposite Philadelphia's Independence Hall to incorporate the world's first title insurance company, The Real Estate Title Insurance Company of Philadelphia. They pledged that their new firm would "insure the purchasers of real estate and mortgages against losses from defective titles, liens and encumbrances," and they guaranteed that "through these facilities, transfer of real estate and real estate securities can be made more speedily and with greater security than heretofore."
     A short time later, the first title insurance policy was purchased by Morris' aunt, Martha Morris, who took out a $1,500 policy to protect her loan on a home on North 43rd Street in Philadelphia. In that first year of business, The Real Estate Title Insurance company of Philadelphia issued 169 policies. Over the years, that company eventually became known as Commonwealth Land Title Insurance Company.

Making a mark on the 20th Century
    As building proliferated during the early 20th century, Commonwealth flourished. And even during the Great Depression when many title insurance companies failed, Commonwealth endured as one of the most stable and financially secure companies in the business. After World War II, Commonwealth became one of the first to change the method of title searching when it implemented a new public records reference and retrieval system. This eliminated the need for all but a few title clerks at City Hall. For its efforts, Commonwealth received a citation of merit from Philadelphia Mayor Bernard Samuels.
     During the 1950's and '60's, Commonwealth began an intense expansion that would eventually result in its qualification to do business in all U.S. state and territories where title insurance is available. One of the most significant acquisitions occurred in 1964 when Louisville Title Insurance Company of Kentucky became a wholly owned subsidiary. This addition secured a stronghold for Commonwealth in both the Midwest and the Southwest.
     As Commonwealth celebrated its centennial in 1976, a testimonial to the title insurance industry was entered into the U.S. Congressional Record.
     During the housing recession of the 1980's, Commonwealth's progressive marketing strategies paid off. By offering a diverse range of services and by increasing market share through the opening of new branch offices and the acquisition of other title companies, Commonwealth remained a formidable industry competitor.
     When Commonwealth teamed up with Transamerica Title (now Transnation) in 1990, the match complemented and enhanced the operations or both companies nationwide.

We're still making history
     It's one thing to found an industry, but to consistently remain a leader in that industry for more than one hundred years is quite another accomplishment.
     Today, the commonwealth/Transnation organization represents one of the largest and most consistently profitable title insurance operations in the United States, protecting property ownership across the nation and in Puerto Rico and the Virgin Islands with a network of more than 4,000 policy-issuing location. Commonwealth and Transnation representatives are familiar with local real estate customs and practices and can assure clients of smooth, trouble-free closing on properties of every description. The companies also provide specialized title services for large commercial and industrial, multisite and interstate real estate projects through their National Commercial Services division.
     With financial strength, nationwide capabilities and a tradition of innovation that has continued unabated, Commonwealth and Transnation have become an American tradition of enduring progress. Yet their mission has always remained the same - to assure real estate investors that their property titles are clear and to promote the American dream of growth, stability, permanence and the hope of the future.

*Timeline
1874
The Pennsylvania legislature passes an act that provides for the incorporation and regulation of title insurance companies.
1876
As the U.S. celebrates its Centennial and Alexander Graham Bell invents the telephone, Commonwealth's predecessor founds the title insurance industry.
1879
Thomas Edison develops the first light bulb.
1903
Orville and Wilbur Wright accomplish historic flights near Kitty Hawk N.C.
1907
The American Title Association, the forerunner of the American Land Title Association, is established.
1910
Transamerica Title Insurance Company (now Transnation Title Insurance Company) is founded.
1923
The first sound-on-film motion picture is demonstrated for the press.
1927
Captain Charles A. Lindbergh makes the first non-stop New York-Paris flight aboard the Spirit of St. Louis.
1929
Stock market crash plummets nation into the Great Depression. While many title insurance companies fail, Commonwealth's predecessor remains strong and stable.
1931
The completion of the Empire State Building in New York sets the trend for new construction practices.
1935
Monopoly board game introduced.
1946
Commonwealth issues its one-millionth policy.
1947
Commonwealth becomes the first to change the method of title searching by implementing a new public records reference and retrieval system.
1953
Jonas Salk introduces polio vaccine.
1955
Commonwealth establishes a National Title Department, and begins its expansion as a national title insurance underwriter.
1967
Commonwealth's Employee Relocation Division is established.
1969
Commonwealth acquires Louisville Title Insurance Company, significantly expanding operations in the Midwest and Southwest. Astronaut Neil Armstrong becomes first man to walk on the moon.
1975
Commonwealth joins the Reliance Group Holdings family of companies.
1976
U.S. marks 200 years of independence. Commonwealth celebrates its 100th birthday and a testimonial to the title insurance industry is entered into the U.S. Congressional Record.
1981
World's first reusable spacecraft, the space shuttle Columbia, is launched.
1982
A permanent artificial heart is implanted in a human recipient for the first time.
1990
Commonwealth and Transnation become affiliated, a union that enhances the operations of both companies.