Georgia Attorneys Title Guaranty Fund

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The Georgia Fund
Background 

Attorneys' Title Guaranty Fund, Inc.

Background
ATGF was incorporated under the Georgia Nonprofit Corporation Code on November 20, 1970. A portion of the incorporators were members of Attorneys' Title Guaranty Fund Committee, a special committee of the State Bar of Georgia's Real Property Law Section. At its Midwinter meeting of 1970, the Section heard a report by the Special Committee as to the need for bar-related title insurance in Georgia, which report cited the expansion of efforts by commercial title insurance companies to offer a total conveyancing service in direct competition with law offices and cited the need for practicing attorneys to furnish full and complete protection, including the additional indemnity of title insurance, to the public routinely so as to assure financial responsibility on the part of attorneys involved in real property practice. The RPL section at its Midwinter meeting in 1970 urging support by all members of the Section.

Upon incorporation ATGF-Georgia became the newest of nine bar-related title assuring organizations operating in 18 states. Collectively, these companies comprise the National Association of Bar-Related Title Insurers, a trade organization expounding the Bar's interest in protecting the public with independent legal advise supported by financial responsibility in real property examinations.

By December 12, 1971 an operating manual had been approved, a sufficient number of law staff, and a special Georgia form of ALTA Owner and Mortgagee Policies devised, which form includes the delineation of the member's title opinion onto the policy.

Progress by ATGF during the calendar year 1972, our first year of operation status, was significant and encouraging. Of the premium volumes reported by the 25 title insurers qualified and doing business in Georgia, for example, ATGF premium volume ranked seventh from the top.

From June 1, 1982 until March 12, 1989, ATGF was with a title insurance company from New York. On March 13, 1989 ATGF entered into correspondent agreement with First America Company of California. Approved members of ATGF can now furnish First American Title Insurance Company ALTA policies to clients upon a member's rendering of title opinion to the insured.

Funding
Funding of this bar-related effort is derived from "initial" and "additional contributions" by members. Initial contributions of $50 for a sole practitioner and $100 for a partnership of two, or more partners are prerequisites to membership. Each Membership Unit carries one vote in the affairs of the company. A sole practitioner may be issued one Membership Unit and a partnership may be issued no more or less than the number of membership units which equal the number of partners, who actually engage in real estate settlement and closing practice (or principals in the case of P.A's or P.C's) in a law firm up to a maximum of 10 units.

"Additional Contributions" are premiums covering the cost of pure insurance underwriting which a member pays to ATGF as he issues our policies. The Additional Contributions to the Fund is currently set at approximately 40% of the local and statewide rates for title insurance applicable in Georgia.

Principles and Objectives
As to objectives, the articles of Incorporation provide that the corporation is organized "(a) To effect a voluntary association of Georgia attorneys in a corporate undertaking owned, managed, and controlled by them, and which is to be basically a nonprofit, cooperative venture for the purpose of better framework of the legal profession, for guarantying and insuring title and interests in real property." More succinctly put, ATGF exists to promote complete protection of the public by the profession in the area of real estate by furnishing the public, through the profession, the additional indemnity provided by title insurance in addition to the primary assurance of marketable title provided by your title opinion.

Our objective is to make the public aware of the lawyer's role in a real estate transaction, aware that independent legal advise plus title insurance is greater protection than title insurance alone, but aware that independent legal advise in the client's best interest, plus title insurance, is available only through law offices.

The Concept
The bar-related® title insurance concept is to furnish the additional indemnity of title insurance as an appendage to the attorney's title opinion, as a regular office routine and as a service reflected in an overall professional fee for services.

To the extent that your client will rarely understand your innocence should a flaw outside the record title cause him, and to the extent that your client will expect prompt and full title insurance is just as much for your protection and goodwill as it is for your client's protection. Attorneys concerned with the appropriateness of furnishing title insurance with all title opinion and including the cost thereof in your fee, should read Formal Opinion No. 304 of ABA Committee on Professional Ethics, which affirms the appropriateness of both.

The Procedure
The procedure for furnishing title insurance under the bar-related® title insurance concept is to render a formal title opinion to the insured and on a combined document of title opinion and title policy.

Attorneys who are determined to be competent to render opinion as to the marketable status of title are authorized to follow this procedure in reliance upon the State Bar's Title Standards.

A Georgia Not For Profit Corporation