What action should a title agent take if they identify a potential claim against a title?

When a title agent identifies a potential claim against a title, the appropriate action is to document the claim and advise the client appropriately. This approach is crucial for several reasons.

First, documenting the claim ensures that there is a clear record of the issues involved. This documentation is vital for both legal liability and for providing accurate information to the client about the status of the title. It helps to protect the title agent from future disputes and potential ramifications if the claim becomes an issue after the transaction is completed.

Secondly, advising the client appropriately means that the title agent is acting in the best interest of the client. The agent should clearly inform the client about the potential risks associated with proceeding with the transaction in light of the claim. This enables the client to make an informed decision, taking into consideration the possible implications of the claim on their ownership rights and future use of the property.

In essence, acting with transparency and thoroughness not only fulfills the professional and ethical obligations of the title agent but also enhances the trust and relationship between the client and the agent. It is essential for the agent to provide all necessary information so the client can assess their options and potentially explore resolutions to the claim before finalizing the transaction.