The History Of Title Insurance In America 

09/23/2026 11:24 AM       Mark Goodman

Purchasing property is more secure today than ever before. Hundreds of years ago, there were limited resources available to uncover property boundaries and true ownership rights, and issues oftentimes led to unexpected expenses or even fights to the death over property. This process came to a head in the 1868 case of Watson v. Muirhead. 

In that case, a property buyer, Mark Watson, was in the process of purchasing a property. Watson had an “abstract of title” performed on the property, which was what you would call a title search today. During the investigation, investigator Charles Muirhead found a lien associated with the property. The lien was turned over to an attorney, who after researching the lien, wrote that he did not believe it was in fact a valid lien. Muirhead signed off on the survey and Watson closed on the property. 

Shortly after Watson completed the purchase, the property was sold at a Sheriff's sale in order to pay off the lien, which was determined to be valid. Watson sued Muirhead for his damages, but the court held that because Muirhead consulted with a lawyer about the lien, he was not liable for damages, even though the advice he received from the lawyer was incorrect. At that point, the legal standard was such that a title investigator could only be held liable for negligence or failure to act with due care. Muirhead’s consultation with a legal professional meant he could not be held liable in the eyes of the law. 

Title insurance protects a property purchaser from unknown title issues like defective titles, liens and encumbrances on a property that originated prior to someone acquiring the property but after they’ve closed on the deal.  

To connect with a team who can lower your risk and set you up with a title insurance policy suited to your specific needs, reach out to the team at Commercial Partners today at (612) 337-2470.