WESTERN STATE UNIVERSITY
COLLEGE OF LAW
COURSE SYLLABUS
TITLE INSURANCE, SEC. 409A
2007 SUMMER SESSION B
July 31
August 1, 2, 7, 8, and 9
Class Materials:
There is no required course text. There is no recommended text for this course. I
will distribute samples of products furnished by title companies and title insurance
companies to you during class sessions. You are at liberty to bring any such samples to
class for assessment by the class at an appropriate point in the course.
Course Coverage, Goals, and Opportunities:
The primary goal of this course is to assist you in obtaining a working knowledge
of the business of title insurance and related products and services provided by title
insurance companies or title companies. Another goal of this course is to assist you in
gaining knowledge about various functions of attorneys for sellers, buyers, lenders, title
insurance companies, title companies, escrow companies, and trustee foreclosure
companies.
The course on Title Insurance offered during Summer Session B is comprised of
six in-class experiences. The first through fifth class sessions will be comprised of inclass discussions about title insurance and related topics.
Course Methodology:
The course on Title Insurance offered during Summer Session B will be a survey
course regarding title insurance and related topics. I will use a lecture format to the extent
necessary. I invite you to raise any question and share any comment during each class
session that are germane to the subject matter then under discussion. I want you to be an
active participant in the learning process that will take place during this course.
Examination and Grading:
An open-notes exam will be administered during the sixth and final class session.
That means that you will be able to rely upon your course notes, to the extent you deem
necessary, during the in-class final exam.
The general examination procedure contained in the latest edition of the “Student
Handbook” is incorporated in, and made a part of, this syllabus by this reference as
Title Insurance Course Syllabus
Professor Sheppard – Summer Session B - 2007
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though set forth in full in this syllabus. Additional exam instructions and exam
procedures that apply to the exam to be administered in this course will be included as
part of the course exam packet. You must comply with all oral and written instructions
that are given to you concerning the course exam.
You will have sixty minutes within which to complete the final exam. The exam
will be comprised of 30 objective questions.
Your academic performance will be measured and recorded using a numeric
grade system on a scale of 0.0 to 4.0. By this reference, Section 8 of the “Student
Handbook” regarding “Grading” is incorporated into, and made a part of, this syllabus as
though set forth in this syllabus in full.
Office Hours, Office Extension, E-Mail, Faxes:
I plan to be in my office (Room 312B) between 5:00 p.m. and 6:00 p.m. on the
evenings when the class will be in session. If you need to confer with me, but you are not
able to meet with me during any one of those times, you may contact me via telephone, email, or fax.
My WSU office telephone number is (714) 459-1152. My WSU e-mail address is
csheppard@wsulaw.edu. The faculty fax number is (714) 525-2786.
Attendance:
Attendance in class is mandatory. By this reference, the section of the latest
edition of the “Student Handbook” regarding attendance is incorporated into, and made a
part of, this syllabus as though set forth in this syllabus in full.
Schedule of Classroom Instruction:
Class sessions will begin at 6:30 p.m. There will be a fifteen-minute break from
8:00 p.m. to 8:15 p.m., and class sessions will adjourn at 9:45 p.m.
Lists of Reference Materials:
The following are lists of textbooks, treatises, California statutes, and law review
articles regarding title insurance. Those listings are provided to you for your information
and use either prior to the commencement of the course, during the course, or after the
completion of the course. The listings are a not a complete and exhaustive listing of
every reference material that currently exists regarding the topic of title insurance.
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Textbooks
Textbooks on the Law of Real Property
Edward H. Rabin, Roberta Rosenthal Kwall, and Jeffrey L. Kwall, Fundamentals
of Modern Property Law 5th ed. (Foundation Press, 2006) at 1089 – 1112.
Jesse Dukeminier and James E. Krier, Property 4th ed. (Aspen Law, 1998) at 722737.
John E. Cribbet, et al., Property Cases and Materials 7th ed. (Foundation Press,
1996) at 1229-1361.
Joseph William Singer, Property Law: Rules, Policies, and Practices 2nd ed.
(Aspen Law, 1997) at 960.
Edward H. Rabin, et al., Fundamentals of Modern Property Law 4th ed.
(Foundation Press, 2000) at 1073-1095.
Curtis J. Berger and Joan C. Williams, Property: Land Ownership and Use 4th ed.
(Aspen Law, 1997) at 1278-1302.
A. James Casner and W. Barton Leach, Cases and Text on Property 3rd ed.
(Little, Brown and Company, 1984) at 672, 688, 919-936
Herbert Hovenkamp and Sheldon F. Kurtz, The Law of Property: An Introductory
Survey 5th ed. (West Group, 2001) at 612, 643-646.
Olin L. Browder, et al., Basic Property Law 5th ed. (West Publishing Co., 1989) at
862-887.
Jon W. Bruce, et al., Cases and Materials on Modern Property Law 2nd ed. (West
Publishing Co., 1989) at 463-465, 615-635.
William B. Stoebuck and Dale A. Whitman, The Law of Property 3rd ed. (West
Group, 2000) at 917-923.
Charles Donahue, Jr., et al., Property: An Introduction to the Concept and the
Institution – Cases and Materials 3rd ed. (West Publishing, 1993) at 629-641.
Sandra H. Johnson, et al, Property Law: Cases, Materials and Problems (West
Publishing Co., 1992) at 422-425, 505-506, 528-542.
Textbooks Regarding Real Estate Transactions or Secured Transactions in Real
Property
George Lefcoe, Real Estate Transactions 3rd ed. (Lexis Publishing, 1999) at 255277.
Robin Paul Malloy and James Charles Smith, Real Estate Transactions: Problems,
Cases, and Materials (Aspen Law, 1998) at 125, 517-560, 1149.
Michael T. Madison, et al., Modern Real Estate Finance and Land Transfer: A
Transactional Approach 2nd ed. (Aspen Law, 1999) at 102-116, 249-251.
Paul Goldstein and Gerald Korngold, Real Estate Transactions: Cases and
Materials on Land Transfer, Development and Finance (Foundation Press, 1997) at 300314
Title Insurance Course Syllabus
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Treatises
D. Barlow Burke, Jr., Law of Title Insurance (1986).
11 Thompson on Real Property, Thomas ed., “Title Insurance,” §§ 93.01-93.10, at
223-332.
CEB California Title Insurance Practice 2nd ed. (1999).
16 Powell on Real Property (Powell-Rohan ed.), “Title Insurance,” c. 92, at 92-1
to 92-91.
3 Miller & Starr, California Real Estate 2d, “Title Insurance,” §§7.1, et seq.
California Statutes
CA Ins. Code §§12340-12388, 12390-12417
§12340.1 – Title Insurance: Defined.
§12340.2 – Title Policy: Defined.
§12340.3 – Business of Title Insurance: Defined.
§12340.10 – Abstract of Title: Defined.
§12340.11 – Preliminary Report, Commitment, Binder: Defined.
Law Review Articles
Quinton Johnstone, Title Insurance, 66 Yale L. J. 492 (1957).
Jerome J. Curtis, Jr., Title Assurance in Sales of California Residential Realty: A
Critique of Title Insurance and Title Covenants with Suggested Reforms, 7 Pac. L. J. 1
(1976).
Joel E. Smith, Annotation, Title Insurance: Exclusion of Liability for Defects,
Liens, or Encumbrances Create, Suffered, Assumed, or Agreed to by the Insured, 87
A.L.R.3d 515 (1978)
Michael M. Rooney, Title Insurance: A Primer for Attorneys, 14 Real Prop. Prob.
& Tr. J. 608 (1979)
James M Pedowitz, Title Insurance – What Every New York Lawyer Should
Know, 52 N.Y. St. B. J. 292 (1980).
Joyce Dickey Palomar, Title Insurance Companies’ Liability for Failure to
Search Title and Disclose Record Title, 20 Creighton L. Rev. 455 (1987).
Raymond J. Werner, The Basics of Title Insurance, in A.B.A. Section of the
Quinton Johnstone, Land Transfers: Process and Processors, 22 Val. U. L. Rev.
493 (1988).
Joyce D. Palomar, Bank Control of Title Insurance Companies: Perils to the
Public that Bank Regulators Have Ignored, 44 Sw. L. J. 905 (1990).
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Schedule of Topics:
The following is a list of topics that will be explored to one degree or another
during the course on Title Insurance. We will not be able to examine each topic in an
exhaustive manner. Please keep in mind that the course will span a total of 15
instructional hours, including the time that will be devoted to the in-class examination
that will take place on Thursday, August 9, 2007.
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Introduction to the topic of Title Insurance.
A comparison of various forms of title assurance available to owners
of interests in real property located in the United States.
History of the development of the business of title insurance.
The business of title insurance.
Distinctions between title companies and title insurance companies.
Record title systems.
Private title plants.
 Property indexes.
 General indexes.
 Distinctions between grantor/grantee indices and tract indices.
Title Insurance products issued in contemplation of the issuance of a
policy of title insurance:
 Preliminary reports.
 Commitments.
 Binders.
Distinctions between abstracts of title and preliminary reports,
commitments, and binders.
Basic attributes of policies of title insurance.
Distinctions between abstracts of title and policies of title insurance.
Issuance of a policy of title insurance based on:
 Internal title searches.
 Title searches presumably performed by another company.
 Attorney opinions of title.
 Abstracts of title.
Industry groups (e.g., the ALTA (American Land Title Association),
the CLTA (California Land Title Association), and others).
Types of title insurance policies:
 Standard coverage.
 Extended coverage.
 Limited coverage.
 Owner’s policy.
 Lender’s policy.
 Lessee’s policy.
 Other.
Component parts of a title insurance policy:
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Coverage provisions.
 Endorsements.
 Matters not covered.
 Conditions and Stipulations.
Basic premium structure (pricing).
Coinsurance and Reinsurance.
Selected Types of Guarantees, including:
 Trustee Sale Guarantee (TSG).
 Litigation Guarantee.
 Subdivision Guarantee.
 Title Plant Guarantee.
Claims.
 Not involving litigation.
 Scope of duty of indemnification.
 Involving litigation between an insured and a third party.
 Scope of insurer’s duty of defense.
 Scope of insurer’s option to prosecute.
 Involving litigation between an insured and the title insurer.
 Claims by an insured that the insurer has engaged in bad faith.
 Claims by an insurer that the insured has engaged in bad faith.
Other services sometimes provided by title insurers or title companies:
 Customer Service and Property Profiles.
 Escrow services.
 Sub-escrow services.
 Dept. of Real Estate (DRE) services.
 Collection agent and payoff services.
 Title holding under a “Holding Agreement.”
Governmental regulation of the title insurance industry.
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