Title examiners examine title according to underwriting guidelines. In Pennsylvania, if a title examiner is reviewing a chain of title where a Deed has recorded for a transfer amount less than $20,000, approval from an underwriter is required before proceeding. Read on to find out how this policy helped a title examiner detect a forgery.

Susan M. McAtee, a title examiner in the Philadelphia Title Production Department, was working on an order for a title agent. She knew from the beginning she would need to have an underwriter review and approve the title report because the insured amount being requested was only $18,500.

Susan carefully reviewed the last deed in the chain of title for any discrepancies. She noticed the signature of the notary on the acknowledgment was odd. It was either written by someone who did not have a steady hand or someone who kept stopping and starting, in an attempt to make the signature match the notary's signature on record. Susan pulled the notary's recorded commission so she could compare the signatures.

Susan's instincts were right. The two signatures of the notary clearly did not match! She finished her examination of the chain of title and forwarded the title report to an underwriter for approval; she pointed out the mismatched signature of the notary on the most recent deed in the chain of title.

Underwriting agreed with Susan's findings and decided not to issue the title report to the title agent. She notified the agent our Company was unwilling to insure the transaction.

Susan reported her findings to National Escrow Administration at settlement@fnf.com. We were curious about the property and why it appeared there was a forgery in the chain of title. The forged deed recorded in 2008 so why did it take so long for this to come to light?

An escrow administrator searched the property on Google Maps™ expecting it to be a vacant lot. It was not. It was a townhome. After further review of the documents, an explanation was found in the Philadelphia Real Estate Transfer Tax Certification indicating the low sales price.

The building located on the property had no roof! The certification contained a transfer tax exemption that read, "Complete shell; can see daylight from inside; no roof." It was clearly in need of demolition or major restoration.

Most likely the previous owner, who inherited the property in 1979, had simply abandoned the property altogether. Perhaps she cannot be found at all. As a result, it appears the new grantee took the property by forgery through a deed recorded in Philadelphia and now the chain of title will have to be cleaned up before the property can be sold.