In a couple of areas of the country our offices work with independent escrow companies who are owned by individuals who have no affiliation to a title insurance company. They simply provide escrow services. As a result, our Companies regularly provide title services and work closely with the escrow company to successfully close a transaction. In Friday Harbor, Washington, our Chicago Title office regularly handles title–only transactions from independent escrow companies or law firms.

Chicago Title was being asked to insure title in a sale where an independent escrow company was acting as the settlement agent. The independent escrow company delivered to Chicago Title two original powers of attorney (POA), the deed and deed of trust for recordation. There were two sellers who appointed the same person to act as their attorney–in–fact.

Chicago Title's Debbie Sutliff received the documents to record. She carefully reviewed the documents to ensure legal descriptions were attached, they were fully executed and the POAs did authorize the attorney–in–fact to sell the property and execute the required documents at closing.

During her review, Debbie noticed the attorney–in–fact only signed the grantors' names on the deed instead of signing her name as the sellers' attorney–in–fact. Debbie brought the deed and her concerns to the manager's attention who agreed with her findings.

Debbie contacted the escrow officer and explained the deed needed to be corrected and re–executed. The escrow officer jumped in her car and drove to Chicago Title to pick up the deed. Thirty minutes later the escrow officer returned with a corrected and re–executed deed. However, the new signatures were nowhere near the same as the previous signatures.

Once again Debbie brought her finding to the manager's attention. The manager, Lori Ronhaar contacted the escrow officer in order to obtain the phone number for the attorney–in–fact. The escrow officer said she had to call her back. About ten minutes later the escrow officer called back with a phone number.

The manager called the attorney–in–fact to discuss the circumstances under which she signed the deed. The attorney–in–fact said she signed the deed only once — the day before. However, when asked, the attorney–in–fact also told Lori that she had not signed the corrected deed. In fact, the attorney–in–fact proceeded to complain to Lori about all the problems she had with this file. Turns out, the attorney–in–fact was not even in town anymore.

Lori explained the original deed was not executed properly and it must be corrected. The attorney–in–fact was very frustrated. She stated she would have signed the document properly if only the escrow officer had told her how.

Lori notified the owner of the independent escrow company. Eventually, a corrected deed was executed by the appropriate parties and recorded by Chicago Title.