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Business Aspects of Curing Title in the 1990S

Sheryl L. Howe, Land and Permitting (1994)

Curing title involves analyzing title defects and the documents or other steps that would be required to resolve the title problem. The cost of curing the title problem must be weighed against the harm which could occur if the title defect is not cured.

This paper will discuss the liability a company could incur if a title defect is not cured. It will address several common title defects and the methods of curing them. The requirements for proper execution of curative instruments by individuals and various entities will be set forth.

Many of the matters discussed in this paper have previously been addressed in an excellent paper regarding title problems and curative measures.1

2. Analysis of Title Defects

A. Evaluating the Risk

Curing title is problem solving. The first step in solving the problem is to understand the risk created by the title defect. “Risk” in this paper refers to the likelihood that a loss will occur and to the amount of the possible loss. In evaluating the risk created by a title defect, it is useful to estimate the amount of money which would be lost if the title defect results in title failure. It is also necessary in some circumstances to evaluate the likelihood that a title defect will lead to title failure.