Louisiana law requires, that before a policy of title insurance can be issued, a title opinion must first be rendered by an attorney authorized to practice law in Louisiana, which opinion shall be based on an abstract of title. “Abstract of title” is a written history of the recorded instruments in the public records affecting the title to real estate. By law the abstract shall cover a time period going back at least 30 years or more. The Louisiana State Bar Association in its 2001 published “Uniform Title Standards” recommends a search 35 years or more.

Prior to 2000 some local and national title insurance companies began using ‘off-shore’ title services found in places such as India, the Philippines and other foreign countries. Often the property reports these “off-shore” services prepare are not based on a complete and thorough review of the records filed in the parish conveyance and mortgage records, as required by law. These property reports are usually based on tax records completed at a fraction of the cost of a proper abstract of title prepared according to Louisiana law. And let’s not forget the issues of identity theft when a title order is sent to an ‘off-shore’ operation, you have no protection under a foreign country’s law for misuse of you non-public personal information.

Merchantable title is the Gold Standard set by Louisiana title attorneys and is the determination by the Louisiana attorney that no third-party has a claim against the property that would be suggestive of litigation, further this is the standard in the Louisiana Real Estate Commission’s mandatory residential purchase agreement. Our experience since 2000 has been that title to property based on earlier transactions in the chain of title handled by national or affiliated title operations, is often based on such “off-shore” title services, resulting in title to the property which may be subject to title defects, rendering the title of the property non-merchantable, meaning the property can not be sold until and unless the title defects are resolved.

If you want to be certain, as Woody Guthrie coined in 1940, that “This Land is Your Land” let your real estate agent or lender know that you want a local independent title company, such as Preferred Title, to handle your transaction. 

You have a federally protected right to select the title service provider that will handle your real estate transaction. So to be certain that your title was READ IN LOUISIANA be sure to request PREFERRED TITLE with offices in Baton Rouge, staffed with attorneys licensed to practice law in Louisiana.