Title Insurance Claims and Property Valuation
Who We Are
Independent Valuation Services for Title Insurance-Related Disputes
A common valuation scenario occurs when certain encumbrances are omitted from a title report and a title insurance claim arises. In these situations, the impact on market value due to this encumbrance can be central to resolving the title defect matter. Schneider Valuation Consultants, Inc. offers objective valuation services related to title defect matters.
SVC’s appraisal analysis helps clarify whether market value has been impacted, and if so, to what extent. Work product is prepared to support title insurance claims and litigation support.
Focus Area
Valuation services are provided in cases involving title defect disputes, third-party liability, and questions of diminished value following discovery of an encumbrance such as easements. These services are used to determine the loss in value and impacts to highest and best use where a reliable valuation is necessary.
Valuation for Title Insurance Disputes
Claims involving the omission of an encumbrance from a title report often give rise to questions of whether market value has changed as a result of the discovery. In other cases, disputes center on whether the cost to cure an issue exceeds the loss in value, or whether the loss is temporary or permanent.
Valuation focuses on measuring the impact on value, which requires an analysis of highest and best use. Work product considers how market participants react to the issue, with conclusions based on relevant market data.
When Valuation Is Used in Title Defect Matters
Property owners, insurers, and attorneys may all rely on an independent valuation to help understand the impacts as it relates to a title insurance claim.
The valuation aligns with proper methodology as well as case law.
Each appraisal is prepared in accordance with professional appraisal standards, applicable regulations, and relevant code and case law.
Who We Work With
Schneider Valuation Consultants works with title insurance companies, property owners, legal counsel, and advisors across a range of property types and loss scenarios.
Title Insurance Companies
The valuation provides a market-based analysis regarding impacts to highest and best use as well as market value.
Property Owners
An independent valuation helps clarify whether the encumbrance (and its discovery) has resulted in a loss of value, if any.
Attorneys
Legal counsel often requires valuation in cases of contested issues, particularly if claims are complex claims or involve multiple parties and experts.
Other Experts
SVC’s expertise in property valuation methodology can be used in conjunction with other experts, or can be used to review value conclusions prepared by other appraisers.
At any step of the process, Schneider Valuation Consultants provides valuation services that can be used in an eminent domain or inverse condemnation matter.
Valuation Considerations
Title insurance-related valuation assignments require careful analysis of relevant issues.
Value of Relevant Characteristics
Professional appraisal standards require identification and analysis of relevant characteristics, including easements.
Highest and Best Use
Highest and best use is central to opining to market value. Understanding this concept before and after the discovery is an important part of the process.
Coordination with Parties
Often, assignments involve the input of multiple stakeholders. Communicating assignment results in a clear and concise manner is paramount to the valuation process.
Support for Intended Use
Work product is prepared with the end use in mind, whether for litigation, to assist with dispute resolution, or some other intended use. Value opinions are documented and supported with market-based evidence.
Title defect valuation services are delivered with objectivity, clarity, and attention to details specific to the property and to the claim. The goal is to help decision-makers understand if, and how, market value has been affected by the event in question.
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or call us at 858.208.3175.
