How Will this affect the vendor teams?

It is interesting to see how technology is impacting on the concept of title.

The American system of recording documents was revolutionary at the time it was implemented. As a result certified copies are the equivalent of originals. I was working on a case several years ago with a firm located in Bristol, England.The firm had been in business for approximately 200 years. I had never stopped to think that any business would have such longevity.

 At that time they were in the process of implementing the American recording system in England. About half the country had implemented the American system, and the remaining half was still on the old British system.

Under the old system original deeds, mortgages and documents impacting title were bound into a sheaf. The title holder would be the holder of the sheaf for as long as he held title to the property. God help him if his deed were not bound into the sheaf or if there was a break in the chain of original deeds contained in the sheaf. It was a very expensive legal procedure to rectify as it was explained to me.

About a year ago I was doing a closing for a British couple in Southbury, Connecticut. The husband indicated that his brother had purchased a property in England to which title dated back to the 14th century. His brother was handed the usual sheaf of deeds at the time he closed on the property.

After the last few efforts to implement e-recording, the newest version that has been piloted in San Mateo County is a costly boondoggle.

The title companys bear high added costs on many levels:

1.  Equipment and software of over $10k. 

2.  One person fingerprinted, background checkedd, state licensed and insurance bonded will have the access codes to the system.  This means:  NO e-recording on every staff person's desk, but one central recorder doing the work, maybe 2 in case one goes on vaca.  Next round:  they go on "strike" and refuse to e-record unless they get a higher wage.  lol

3.  Title Company pays the same recording fees, but then bears the duty and liability at their own cost of stuffing an envelope with the  original document (labor and envelope costs) and mailing it (stamps) to the pertinent party;  something that the county would otherwise do.

4.  Unknown cost in maintenance and upkeep of systems when they malfunction;  also unknown as to whose "end" (county, title company, or transfer points inbetween), when it goes down.  This will create costly delays and add to communication costs.

5.  Final cost, and it's a big one:  Liability.  The title company agent will still need to go to the Records Office twice a day (minimal), as the online index of records is not up-to-date and able to hence provide title clearance.  Even if it were updated by the minute, it does not (in California) provide online access to the document images necessary to clear or verify "hits" on a name search.  Running such things "in house" is asking for a claim down the line.