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bluGillyesterday at 7:43 PM2 repliesview on HN

That depends on the state. I live in Iowa where the state records the transaction and verifies everyone's identity. Almost nobody has title insurance because there is nothing to insure. Every other state I've lived in though isn't as good about checking ID and you need title insurance (who is very good about checking id)


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skissanetoday at 6:08 AM

The system in Iowa, is instead of getting title insurance from a private insurer (as is standard in the US), you get it from a state government agency (Iowa Title Guaranty) which has a legal monopoly on all title insurance in the state. But people in Iowa say they don't have "title insurance", because the term is defined to mean private insurance, not the insurance issued by the state government. A condition of the state-issued title insurance is you need to provide an attorney's legal opinion that there are no issues with the title, and then the insurance covers the risk the attorney did a bad job, or failed to notice some obscure issue or hidden issue. But this is different from a true Torrens title system, in that title registration is not (near-)conclusive evidence of legal title, only de facto presumptive.

A number of US states historically had Torrens title, but most have repealed it, effectively converting Torrens titles to non-Torrens. Illinois had it – only in Cook County – until it was repealed in 1992. California abolished it in 1955. Virginia abolished it in 2019. Washington state abolished it in 2022-2023.

The big advantage of Torrens title is that it eliminates the need for title insurance, or at least makes it much cheaper. (You can still buy title insurance in Australia, but the Torrens title system significantly reduces the risk to the insurer, resulting in lower premiums–the risk it is covering is not that you don't have title to the property at all, rather risks such as the boundary fences being in the wrong places.) But in those US states which had it, title insurers wouldn't give you any discount for having it, and banks would still insist on title insurance to lend, nullifying the primary practical advantage of the Torrens system–the end result was your property was under a different title system which many didn't understand, which could make real estate transactions appear more complex, discourage buyers and lenders, etc. This resulted in political pressure from landowners on the system to be allowed to move off it, which is what resulted in it being repealed.

I think the US state in which Torrens would be most likely to be successful would be Iowa, since private title insurance is banned there. However, repeated attempts to introduce Torrens in Iowa failed, because the attorneys who investigate the validity of titles saw it as a threat to their livelihoods, and they successfully lobbied the state legislature against the idea.

sidewndr46yesterday at 9:32 PM

But how do they verify your identity? Most places I've lived used nearly useless forms of identity verification