This article shall not prohibit a person, corporation, or voluntary association from examining the record of titles to real property, nor shall it prohibit a person, corporation, or voluntary association from preparing and issuing abstracts of title from such examination of records and certifying to the correctness of the same, nor from issuing policies of insurance on titles to real or personal property, nor from employing an attorney or attorneys in and about their own immediate affairs or in any litigation to which they are or may be a party. However, nothing contained in this Code section shall authorize any person, corporation, or voluntary association other than an attorney at law to express, render, or issue any legal opinion as to the status of the title to real or personal property.
(Ga. L. 1931, p. 191, § 1; Code 1933, § 9-403.)
Cross references.- Definition of title insurance, § 33-7-8.
JUDICIAL DECISIONS
Title company may insure titles and employ attorneys to defend actions to which the company is or may be a party. Atlanta Title & Trust Co. v. Fulkalb, Inc., 56 Ga. App. 742, 193 S.E. 796 (1937).
It is neither illegal nor contrary to public policy for a title insurance company to contract to furnish, and to furnish, attorneys at law to defend actions against parties involving titles the company has insured. Atlanta Title & Trust Co. v. Fulkalb, Inc., 56 Ga. App. 742, 193 S.E. 796 (1937).
Title company was an interested party and had such an interest in an action attacking the title insured as would entitle the title company to defend the case by counsel. Atlanta Title & Trust Co. v. Fulkalb, Inc., 56 Ga. App. 742, 193 S.E. 796 (1937).
Use of staff counsel not unauthorized practice of law.
- Activity of furnishing an attorney to an insured by an insurance company using "staff counsel" (a salaried full-time employee of the insurance company) to defend a suit covered by a policy issued by the insurance company constitutes activities "in and about" the insurance company's "own immediate affairs" under O.C.G.A. § 15-19-53 and is therefore not an unauthorized practice of law under O.C.G.A. § 15-19-51. Coscia v. Cunningham, 250 Ga. 521, 299 S.E.2d 880 (1983).
Person refusing to permit title insurer to defend action attacking title cannot recover.
- If a person whose title has been insured refuses to permit the title company to defend an action attacking the company's title, as contemplated in the policy issued, the person cannot recover on the policy. Atlanta Title & Trust Co. v. Fulkalb, Inc., 56 Ga. App. 742, 193 S.E. 796 (1937).
RESEARCH REFERENCES
Am. Jur. 2d.
- 7 Am. Jur. 2d, Attorneys at Law, § 119 et seq.
1 Am. Jur. Pleading and Practice Forms, Abstracts of Title, § 2.
C.J.S.- 7 C.J.S., Attorney and Client, §§ 32, 39.
ALR.
- Liability of one employed to examine and report on title for showing an apparent lien or defect not in reality such, 71 A.L.R. 349.
Drafting, or filling in blanks in printed forms, of instruments relating to land by real-estate agents, brokers, or managers as constituting practice of law, 53 A.L.R.2d 788.
Title examination activities by lending institution, insurance company, or title and abstract company, as illegal practice of law, 85 A.L.R.2d 184.
Liability of attorney for negligence in connection with investigation or certification of title to real estate, 59 A.L.R.3d 1176.
Nature of legal services or law-related services which may be performed for others by disbarred or suspended attorney, 87 A.L.R.3d 279.
Misrepresentation or concealment by insured or agent avoiding liability by title insurer, 17 A.L.R.4th 1077.
Defects affecting marketability of title within meaning of title insurance policy, 18 A.L.R.4th 1311.
Negligence in preparing abstract of title as ground of liability to one other than person ordering abstract, 50 A.L.R.4th 314.
Unauthorized practice of law - Real estate closings, 119 A.L.R.5th 191.
Propriety of insurers' use of staff attorneys to represent insureds, 2 A.L.R.6th 537.