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22 | TH E M R EP O RT FEATURE I n the search for records sur- rounding a property, anyone who has visited one of the 3,000-plus counties across the United States in search of a docu - ment has learned that the storage of legacy records can be an inefficient, inexact, and cumbersome process. However, these annoyances may be a thing of the past as "blockchain technology" becomes mainstream in the lexicon of business. ComputerWorld recently wrote that "[B]lockchain creates an unchangeable record of ... transac - tions, each one time-stamped and linked to the previous one. Each digital record or transaction in the thread is called a block (hence the name), and it allows either an open or controlled set of users to participate in the electronic ledger. Each block is linked to a specific participant ..." From this description, it's easy to imagine how this tool could make the lives of real estate professionals easier. Though blockchain's integration with the title insurance industry is in the conceptual stage at best, it shows real promise to take over the way records are stored. As with most revolution - ary technologies, there will be no shortage of individuals and companies across the real estate and title insurance spectrum at - tempting to create a way in which blockchain can be implemented. The wheat will be separated from the chaff by how well they under- stand the process. A Fragmented "Market" L et's remember that there are few market segments that are more disparate and fragmented than commercial and residential real estate property, with deeds stored by cities, counties, and towns across the country. Add to the mix other stored records such as lien satisfactions, lis pendens, and mortgages and property violations—to name a few—and it becomes clear that keeping track of the information on a property-by-property basis is no simple matter. Title companies know all too well the mistakes often found during the process of clearing issues for a real estate transaction. If in simple terms blockchain serves as a virtual ledger, imagine the size of the ledger necessary that could accomplish this feat in one county, let alone across all U.S. counties. And if that ledger did ex- ist, just how secure and reliable would the information be? Going forward with new transaction information is possible, but what about for the critical legacy data? From that description, one can certainly see the complicated na- ture of this technology and some of the issues that may be encountered trying to revolutionize the archaic system of property records. In the title search process— whether done through the records kept in a county, city, town, or title plant—the number of legacy documents that need to be exam- ined in order to ensure that good, clean title is being provided to ei- ther a buyer (purchase transaction) or lender (refinance and purchase transaction) are many. Paper Overload O ne hundred percent certainty concerning the records found is of paramount importance to the job of clearing the title and issuing a title insurance policy. Inaccurate or incomplete records can result in a title claim at some point in the future. In other words, it's not just about the deed that changes hands at a closing. And, from many years of expe- rience, issues do arise. So, let's take a look at some of the legacy documents and informa- tion that will typically be searched for by a title company and/or the third-party company they engage: • The property deed; • any mortgage(s) both open and/ or previously satisfied; The Building Blocks of Title Will blockchain technology take over the title insurance industry? By Michael Haltman One hundred percent certainty concerning the records found is of paramount importance to the job of clearing the title and issuing a title insurance policy. Inaccurate or incomplete records can result in a title claim at some point in the future. In other words, it's not just about the deed that changes hands at a closing.