With the recent news coverage by the Honolulu Star Advertiser, Perfect Title Company has again reentered mainstream media in the Hawaiian Islands.The video not only provides an accurate history of the formation of the Perfect Title Company and its deliberate and unlawful demise, but also the practical and profound effect it had on the real estate industry.
Since 1893, conveyances of real property could not take place because of the illegal overthrow of the Hawaiian Kingdom government. That government has not been restored, but instead insurgents who were established through United States intervention on January 17, 1893, were unlawfully maintained in power. A clear break in the chain of title originates since January 17th because the notaries public and the registrar of the Bureau of Conveyances were insurgents and not vested with authority under the Hawaiian Kingdom government.
Title Companies during escrow should have revealed this information to the lenders and buyers, but instead concealed it. Lenders and buyers, however, were protected by title insurance. Before the lender agrees to accept the borrowers property, as collateral to ensure the repayment of the loan, which is called a mortgage, the borrower is required to purchase title insurance in the amount of the money borrowed for the protection of the lender. This requirement is in the event there is a defect in the borrower’s title, which would render the mortgage void, the lender has insurance to cover the remaining amount of the unsecured loan.
Title insurance is an insurance policy that ensures the accuracy of the title search done by a title company. Covered risks in the title insurance policy are defective notaries public and recordation of the deed of conveyance. Title insurance that protects the lender is called a “loan policy,” and for the protection of the homeowner it is called an “owner’s policy.”
All land titles in the Hawaiian Islands are defective.