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WAGONLODE
Conestoga Title Insurance Co.
A Land Title Update
2018 Fourth Quarter
Spousal Joinder Issues page 3
Property and Private Organizations page 4
Marketing Title Sales page 6
End of Year To Do List page 7
Welcome Underwriting Attorney page 8
The Holidays are upon us with the publication of this edition of the WagonLode.
It can be a hectic time of year, with family gatherings, travel and gift buying, not
to mention year-end closing deadlines, tax and employment decisions, and
policy reporting requirements.
Amidst this whirlwind of activity, it is a good time of year to pause and reflect
with gratitude on the gifts we have received, the people that surround us and the
opportunities that lie ahead.
We here at Conestoga Title Insurance Co. are grateful for an amazing 2018, and
for the opportunity to serve our expanding family of Agents and Approved
Attorneys. We look forward to an exciting and prosperous 2019. From all of us
here at Conestoga, to all of you, Happiest of Holidays!
Additional Articles Inside this Issue
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XXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXX our Management Team at Conestoga Title
Insurance Co. is proud of our past success and excited about our future
plans. Reflecting back on 2017, the Company experienced its most
profitable year in operations since 2003. Thanks to the support of our
network of agents and approved attorneys, we experienced continued
premium growth and a decrease in claims expenditures. In addition, we
maintained our “A Prime, Unsurpassed” rating from Demotech, Inc., the
nation’s leading independent analyst of title insurance underwriters.
Our accomplishments are a reflection of the quality network of agents
and approved attorneys with whom we are associated. Conestoga Title
continues to be selective with regard to the agents and approved
attorneys that we appoint. It is our belief that our conservative
management style and focus on providing quality customer service are
key attractions to our customers. At Conestoga, direct access to
decision-makers is the standard. Unlike many underwriters, we are
focused on supporting the independent agency system, not competing
with our agents.
Looking ahead, we are committed to providing effective underwriting
support, premier continuing education opportunities, timely legislative
and industry related updates and overall superior customer service. We
are enthusiastic about the healthy economy, vibrant real estate market
and opportunities that arise as a result.
On behalf of our Management Team, thank you for your trust and
confidence. Together with you, we look forward to serving our
John M. Nikolaus, CLTP
Quality Agents and Approved Attorneys
Supporting Your Growth
President, Conestoga Title Insurance Co.
NEED MESSAGE FOR QUARTER 2
John M. Nikolaus, CLTP
President, Conestoga Title Insurance Co.
Message from the President
It is a wonderful time of the year! We are busy with year-end residential and
commercial transactions as well as holiday activities. It is also a time of year when it is
important to reflect on the past year and plan for the New Year.
2018 has been a successful year at Conestoga Title Insurance Co. I am grateful for the
many solid relationships that our company maintains with title agents and approved
attorneys. The quality of work generated by our network has been remarkable. It
gives me great pride when I see agent audit results that are as impressive as they have
been this past year. When conducting an audit, our auditors review accounting,
underwriting, policy issuance and reporting as well as market conduct practices. It is a
pleasure to see that agents are paying close attention to details in order to achieve
excellent results in all areas of their businesses. Our Underwriting Department is
dedicated to providing the best customer service possible. We welcome underwriting
inquiries and appreciate that our agents contact us whenever an issue exists, no
matter how big or small. It is not surprising that our level of claims is at a historic low.
Conestoga’s low claims ratio is a reflection of our impressive network of title agents
and approved attorneys.
When planning for the year ahead, please consider attending one of Conestoga’s
continuing education seminars. Refer to Conestoga Title’s website for details on our
upcoming seminars in Maryland, Virginia and Ohio. Our largest seminar of the year,
Conestoga College, is right around the corner and will take place on January 21 and
22, 2019 in Lancaster, PA. The agenda is impressive and I urge you to consider taking
advantage of this educational opportunity.
I want to thank our agents and approved attorneys for your high quality of work and
for your trust in Conestoga Title as your title insurance underwriter. Our team of title
professionals is dedicated to providing you with the resources that are needed to
sustain and grow your businesses. We believe that prompt and personalized service
sets us apart as the premier choice for your underwriting needs.
May you, your staff and families enjoy a joyous holiday season and a Happy New Year!
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SPOUSAL JOINDER ISSUES IN PENNSYLVANIA AND OHIO
If you happen to be reading this article from the comfort of your office in Maryland, New York
or Virginia, you might find it interesting to note that lack of joinder of non-titled spouses on
deeds, and lack of joinder of non-borrowing spouses on mortgages, are a few of the most
common reasons for title insurance claims in Pennsylvania and Ohio.
In Pennsylvania, the Divorce Code of 1980 recognizes spousal rights (a statutory successor to
common law dower and curtesy). In a nutshell, a non-titled spouse nonetheless has an
interest in: a) property acquired by the other spouse during the course of the marriage to the
extent marital assets were used to purchase the property; and b) property acquired prior to
marriage to the extent such property increases in value during the course of the marriage. As
a result, the spouse will be required to join in the execution of a deed conveying the property,
and in a mortgage encumbering the property.
Joinder on the deed may sometimes be an issue, for example if the spouses are estranged.
Unfortunately, a lengthy estrangement does not obviate the need for joinder. Pennsylvania
does not recognize the concept of legal separation. Joinder on the mortgage is often an issue
simply because the non-borrowing spouse is under the misconception that executing the
mortgage will make him liable for repayment.
Although common law dower is considered antiquated and has been replaced in most states,
dower is still in effect in Ohio. Dower originally developed to protect a non-titled widow who
survived her husband. The concept has been expanded in Ohio to provide the same
protections to widowers. In Ohio, a spouse’s dower interest consists of a one-third life estate
interest in real property owned by the other. Ohio also has the concept of Homestead; every
person domiciled in Ohio is entitled to hold one property as exempt from execution.
As stated above, Pennsylvania does not recognize the concept of legal “separation,” whereas
Ohio recognizes separation by court order. However, in Ohio, if a party is legally separated,
but then reconciles even for a brief period, any property acquired by either of them after the
date of the separation order may lose its character as separate property.
As a result of the laws of Pennsylvania and Ohio as outlined above, title insurers are resistant
to being put in the position of determining what is and what is not marital property. As such,
in Pennsylvania and Ohio, albeit for slightly different reasons, it is imperative to require joinder
of a non-titled spouse on deeds, and joinder of a non-borrowing spouse on mortgages.
SPOUSAL JOINDER ISSUES IN PENNSYLVANIA AND OHIO Eric Borgia, Esq. Underwriting Counsel
4
The changing nature of religious and other private organizations has recently been the
subject of both underwriting and claims files. Insuring transactions where our “Land” is in
a religious entity or an unincorporated association presents particular clearance
requirements and authority issues. Where title is held by a religious non-profit
corporation, the Pennsylvania Not-For-Profit Corporation Act will govern. The powers of
a religious organization depend on whether it is incorporated or unincorporated.
Normally an unincorporated association is not a legal entity and cannot own or dispose
of real property in its own name (54 Pa. C.S.A. 502(b) and 303(b)). The exception being:
when all individual members of an unincorporated association are owners of the real
property as joint tenants. You will need to check the association documents to see what
is needed for approval.
The same goes for incorporated churches; please secure the same information (10 Pa.
C.S.A. §21). Requirements will depend on whether the association is a member of an
established church, i.e., part of a larger group. If so you may need approval of the higher
body.
The general rule (15 Pa. C.S.A. §5502) is that subject to the limitations and restrictions
imposed by statute and limitations and restrictions contained in its articles, every
nonprofit corporation shall have the power:
(4) To acquire, own and utilize any real or personal property, or any interest therein, wherever situated, regardless of any limitation set forth in its articles prior to January 1, 1972 as to the quantity or value of real or personal property which it may hold, or as to the amount of income derived therefrom.
(5) To sell, convey, mortgage, pledge, lease, exchange or otherwise dispose of all or any part of its property and assets, or any interest therein, wherever situated.
(7) To borrow money, issue or incur its obligations and secure any of its obligations by mortgage on or pledge of or security interest in all or any part of its property and assets, wherever situated, franchises or income, or any interest therein.
Property & Private Organizations William J. Parker, VP Underwriting
Religious and Private Organizations
Incorporated Entities
5
Social clubs MAY be tax exempt and the requirements can be found in in the
IRS Code at 501 C (7) including but not limited to:
Fraternities/Sororities
Country clubs
Amateur hunting, fishing and sports clubs
The Code does impose requirements for the association to be tax exempt:
Membership must be limited
Organized for a non-profitable purpose
Must be supported by membership dues, fees
All Net Earnings must go to the entity
Note: clubs may limit themselves to a specific religion
The practical considerations for all of these entities go beyond just obtaining
the entity’s documents. You may need to exceed your normal search
parameters in order to find the answer to:
Is there a clear chain of title?
How is title held?
Has the property always been a “church?”
Make sure name is correct
Double check authority
Double check description
Unincorporated Associations (Clubs)
William Parker, VP Underwriting
Once you have all the information, you may still have questions about the transaction. If so,
please contact our Conestoga Underwriting Dept. at [email protected] or
telephone any of our Underwriting team listed in the Directory on Page 10.
Property and Private Organizations continued
6
When I was a Title Sales Rep for a large title agency in Virginia, I remember one prospect saying: “If Title Sales Reps stopped bringing bagels and donuts to Realtor offices, bakeries would go out of business!” I learned it was not enough to deliver just treats for the staff. Over the years when I also offered marketing solutions, or demonstrated some software in real estate technology or presented networking opportunities, I often heard, “Wow, I didn’t realize title companies offered this help for their clients!”
Have you had similar conversations with your potential clients?
A Title Sales Rep should be viewed as a great business partner/ally for his or her clients.
How? By putting down the bagels and demonstrating value.
Title salespeople today need to be a resource for their clients, supporting efforts in real estate marketing, real estate technology and title insurance solutions. Your Title Sales Rep can be an advanced marketing assistant to the Realtor’s business, helping him or her every step of the way. Yes, we sell title insurance — but how do we gain those title orders? By leading with value for our agent and lender partners and helping their business to grow. We can share information about topics such as:
Creating an effective social media marketing strategy Basic website help: teaching agents about search engine optimization and how to maximize the effectiveness of their real estate websites Assisting in the set-up of homebuyer/seller educational seminars Using CRMs to manage and market to your database Video-YouTube Channel set-up and planning a video marketing strategy
Not every title agency or law firm offers the same services. Consider what your firm or agency does well and then plan how to share those experiences with your current and potential clients. Utilizing a few of the marketing strategies listed above can help real estate agents gain exposure for themselves and their brand, gain clients, and will keep them relevant to clients offline and online.
Help your clients to grow and you can bring in more business for your title services. The relationship is a win/win.
Having your Title Sales Reps** Bring More to the Table! Julie Turner, Regional Marketing Representative
**The term “Title Sales Rep” is used in this article. We recognize that not all of our agents employ sales reps. However, the information and advice provided in this article can be applied by all the employees responsible for marketing efforts at your law firm or title agency.
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As we approach the end of the year, please remember to complete the following “housekeeping” items so
that you can start 2019 with a fresh, new outlook knowing you have your operations current and in good
order:
1) Make sure all premiums collected during 2018 are remitted to Conestoga by 12/31/18.
2) Type and issue all policies and submit copies with corresponding settlement statements to Conestoga (contact us if you need a policy status report).
3) Complete all outstanding policy correction requests that you received from Conestoga during the year.
4) Cancel all commitments that have not closed within 180 days of being issued.
5) Review the three-way reconciliations for all of your active and dormant escrow and recording accounts and do the following:
Fund from operating any files/ledgers with negative balances
Research and disburse funds for files with positive balances
Research and resolve outstanding checks for taxes, recording, lien payoffs, HOA dues and Homeowners
insurance
Determine what funds are eligible for escheating to the state and make sure to report and remit same
in 2019 in accordance with your state rules
6) Make sure you have addressed all recommendations and required actions in your 2018 annual review report.
7) Make plans for filing your 2018 1099S reports with the IRS.
8) Establish your 2019 business goals and plans for reaching them.
9) Review and update your Best Practices Manual.
10) Make sure your settlement software, firewalls and other computer security systems are current and up
to date with the most recent versions.
11) Register with the ALTA Title & Settlement Agent Registry if you have not already done so.
End of Year “To Do List” Don Delgado, VP Agency Administration
8
Joseph John Kambic, Esq. VP Claims & Recovery
Statistics and Analysis I and II were required courses for graduating with a Bachelor of Arts
degree in Psychology. Although I don’t recall the various mathematical formulae, I can recall
key terms like standard deviation, mean, median, random sample and statistically significant.
However, I was much more interested in the “people” aspect to Psychology, which is defined
as the study of human behavior. Oh, I remember one thing from my “Introduction to
Psychology” class. You want to buy a new car that was assembled on a Wednesday.
As of the time of the penning of this article, Conestoga Title Insurance Co. will have once again
exceeded the insurance industry-wide goal of closing one claim file for every new claim file. By
this same time in 2009, one year after the housing market started crashing, we were inundated
with new claims. Now that the foreclosure boom has waned, our 2018 new claims are down
65% from 2009. And our 2018 reserves are down approximately 89% compared to 2009
reserves.
This year we continued to receive claims from Servicers and foreclosure attorneys on matters
that we have repeatedly denied. I suspect that foreclosure counsel are following the Lender’s
checklist and simply documenting their files with presenting a “title” claim and with our
coverage denials.
As for Servicers, we repeatedly receive claims where the Servicer is lacking proof of privity. In
other words, the Servicer lacks documented evidence either that they represent our Insured or
that they have the right to present a title claim for our Insured. Some Servicers continue to
provide LIMITED Powers of Attorney that fail to give the Servicer the specific power to submit a
claim, an insurance claim, or a title insurance claim for our Insured. In all fairness to a few
Servicers out there, we have received a few Limited Powers of Attorney containing the
required language.
I wish you a relaxing end to the year 2018 and both a prosperous and enjoyable 2019.
2018 Claims in Review A Few Statistics and Patterns
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Rick Hecker is the newest member of Conestoga
Title’s Underwriting Department. He is a Lancaster
County native and joined Conestoga in October
2018. Before joining Conestoga Title Insurance Co.,
Rick was a shareholder at the law firm of Clymer
Bodene PC, where he managed the firm’s in-house
title operation and represented numerous real
estate investors in and around Lancaster County,
assisting them in transactions involving the
purchase and sale of distressed properties,
including foreclosure, tax sale, and REO properties. Rick is a graduate of Hillsdale
College with a Bachelor of Arts in History, and received his J.D. with honors from Liberty
University School of Law. He is admitted to practice in the state courts of Pennsylvania
and New Jersey, as well as the United States District Court for the Middle District of
Pennsylvania.
Rick is married and the father of three daughters (all between the ages of three
months and four years old) and when spare time permits, he enjoys playing board games,
attending car shows and tinkering in the garage on his 1981 Fiat X1/9.
Conestoga Adds Dedicated Underwriting Attorney
January 21 and 22, 2019 at The Eden Resort & Suites in Lancaster, PA
You do not need to be a current Conestoga agent to attend this seminar which has been approved for 9 NJ and PA CE/CLE credits.
Continental Breakfast and Lunch provided for attendees on both days.
And the Pennsylvania Land Title Institute
Invite you to register for the 33nd Annual Conestoga College
For more information or to register visit www.plta.org. Scroll down the home page to Calendars and
click on Conestoga College for the agenda and registration form. Contact Colleen Sheerin at Conestoga
Title Insurance with any questions.
10
Conestoga Title Insurance Co. Personnel Contact Information
Happy Holidays and Peace and Prosperity in 2019
Our offices will be closed on December 24th and 25th and
also on January 1, 2019.
We look forward to working with you as this year winds
down and a new one begins.
NAME POSITION DIRECT DIAL EMAIL
Bill Parker VP, Underwriting & Claims 800-861-9414 [email protected]
Colleen Sheerin Marketing Assistant 800-272-9414 [email protected]
Don Delgado VP, Agency Administration 800-724-0935 [email protected]
Doug Rauchut Agency Audit Manager 800-257-9578 [email protected]
Doug Riggin VP Sales 800-257-4176 [email protected]
Eric Borgia Underwriting Counsel 800-861-9352 [email protected]
Jill Funk Agency Support Admistrator 800-672-2985 [email protected]
Joe Kambic VP, Claims & Recovery 800-257-5217 [email protected]
Joel Angelo Agency Auditor 800-830-9031 [email protected]
John Nikolaus President 800-272-3570 [email protected]
Jonathan Markel Agency Representative 844-509-0490 [email protected]
Julie Turner Agency Representative 717-344-0581 [email protected]
Rebecca Breault Paralegal/UW Administrator 800-478-8630 [email protected]
Rick Hecker Underwriting Counsel 855-856-0246 [email protected]
Robin Wolbert Treasurer 800-257-1966 [email protected]
Susan Anderson Paralegal 877-502-5158 [email protected]
Sheryl Childs Policy Administrator 800-257-7921 [email protected]
TITLE DEPARTMENT 800-257-9414 [email protected]
UNDERWRITING SERVICE TEAM [email protected]
