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- TITLES:
- TITLE: the SUM OF ALL FACTS ON WHICH OWNERSHIP IS FOUNDED
- ABSTRACT OF TITLE:
- SUMMARY of ALL INSTRUMENTS affecting the TITLE
- like DEEDS, BILLS, GRANTS, ENCUMBRANCES
- NOT a SINGLE DOCUMENT, rather...
- a collection of INSTRUMENTS listed on the ABSTRACT
- MARKETABLE TITLE:
- FREE of REASONABLE DOUBT as to OWNERSHIP
- CHAIN OF TITLE:
- chain of ownership back to the original source of title
- PUBLIC RECORDS:
- STATUTE OF FRAUDS in ENGLAND in 1677
- BEFORE this whoever was on the land owned it
- AFTER this...
- WRITTEN DEEDS were REQUIRED to show TRANSFER OF OWNERSHIP
- DEEDS are filed in PUBLIC RECORDS
- PUBLIC RECORDS are available for PUBLIC INSPECTION
- CONSTRUCTIVE NOTICE:
- recording document in PUBLIC RECORDS
- PHYSICALLY OCCUPYING the property
- to DETERMINE OWNERSHIP, inspect PUBLIC RECORDS and WHO OCCUPIES
- prospective BUYERS should do BOTH
- ACTUAL NOTICE:
- based on what your have SEEN, HEARD, READ, or OBSERVED
- usually at the COUNTY LEVEL, sometimes the CITY
- NOT required by law - a privilege to let owners give PUBLIC NOTICE
- TORRENS LAND TITLES:
- used in VERY FEW STATES
- VERIFIES OWNERSHIP of property in a SINGLE DOCUMENT
- shows STATUS including ENCUMBRANCES and LIENS
- eliminates the need for TITLE SEARCHES
- a state must pass a TORRENS TITLE ACT to enable this
- Steps:
- a QUIET TITLE ACTION is filed in court
- asks the court to ascertain the condition of the TITLE
- the court does so
- the court orders the REGISTRAR OF TITLES to issue a
TORRENS TITLE CERTIFICATE to the property
- identifies BOUNDARIES, TITLE HOLDER, ENCUMBRANCES
- SUBSEQUENT ENCUMBRANCES must be entered on the REGISTRAR'S copy
- gives CONSTRUCTIVE NOTICE
- when conveyed...
- GRANTOR gives GRANTEE a DEED
- GRANTEE presents the DEED to the REGISTRAR
- REGISTRAR destroys the old certificate and issues a new one
naming the GRANTEE as OWNER
- TITLE INSURANCE:
- protects against...
- FORGED DOCUMENTS
- UNDISCLOSED HEIRS
- DOCUMENTS FILED INCORRECTLY
- MISTAKES IN LEGAL INTERPRETATION OF WILLS
- GAPS in the CHAIN OF TITLE
- Two Types:
- OWNER'S and MORTGAGEE'S
- VAST MAJORITY of policies are issued to MORTGAGEES (lenders)
- OWNER'S policy are usually equal to the ACQUISITION COST
- some cover appreciation as well
- TERMINATES when the OWNER or HEIRS terminate interest
- MORTGAGEES' policies DECREASE as the loan is PAID DOWN
- so they're CHEAPER
- BOTH OWNERS' and MORTGAGEES' premiums are a ONE-TIME FEE
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