REAL ESTATE TRANSACTIONS METHODS OF TITLE ASSURANCE Professor

Alan Greenspan • “Laws protecting & securing property rights directly responsible for a 7

My Background Real Estate Litigation Transaction Cardinal Title Commercial & Title Escrow Real Estate

OUTLINE OF DISCUSSION • • • 1. 2. 3. 4. 5. Real Estate Contract

• 9. EVIDENCE OF TITLE: Seller shall furnish and pay for an owner’s

THE RECORDING SYSTEM AND WARRANTIES OF TITLE • • 1. 2. 3. 4. First

OFF RECORD TITLE MATTERS See #4 • • • 1. 2. 3. 4. 5.

PRE-TITLE INSURANCE, ABSTRACTS AND ATTORNEY’S OPINION • 1. Creditworthiness of the signatory • 2.

SCHEDULE A • • • 1. 2. 3. 4. 5. Effective Date Proper Insureds

SCHEDULE B-I • Items which need to be satisfied to clear Seller’s encumbrances and

SCHEDULE B-II • 1. Generic Exceptions • 2. Specific Exceptions

GENERIC EXCEPTIONS • 1. Survey Items • 2. Mechanic’s Liens • 3. Parties in

SPECIFIC EXCEPTIONS • • 1. 2. 3. 4. Real Estate Taxes Assessments Platted Roads,

RECORDING AND ISSUANCE OF FINAL POLICY • See #6

SURVEY See #8 • 1. Carefully review and inspect ▫ Encumbrances ▫ Setbacks ▫

Slides: 17

Download presentation

REAL ESTATE TRANSACTIONS METHODS OF TITLE ASSURANCE • Professor Robert J. Weiler • October 3, 2012 • Presented by James Havens • Havens Limited • • • 141 E. Town Street Suite 200 • Columbus, Ohio 43215 • 614 -228 -6888 • Fax: 614 -228 -6878 Email: jhavens@havenslimited. com

Alan Greenspan • “Laws protecting & securing property rights directly responsible for a 7 fold increase in the standard of living since 1900. ” Why: • Individuals risk effort. • Lenders & Investors risk capital.

My Background Real Estate Litigation Transaction Cardinal Title Commercial & Title Escrow Real Estate Project Development Real Estate Management

OUTLINE OF DISCUSSION • • • 1. 2. 3. 4. 5. Real Estate Contract Why A Recording System? What Is A Title Search? Why Do We Use Title Insurance? How Do We Handle “Off Record” Title Matters

• 9. EVIDENCE OF TITLE: Seller shall furnish and pay for an owner’s title insurance commitment and policy…. • And shall show in Seller marketable title in fee simple and clear of all liens and encumbrances except: • covenants, restrictions, conditions and easements of record that do not unreasonably interfere with present lawful use….

THE RECORDING SYSTEM AND WARRANTIES OF TITLE • • 1. 2. 3. 4. First in time; first in line Marketable Title Act The indexing system - See #3 The undesirability of personal warranties

OFF RECORD TITLE MATTERS See #4 • • • 1. 2. 3. 4. 5. Future taxes and assessments Mechanic’s liens Unrecorded interests (options, leases) Survey Mental/legal capacity

PRE-TITLE INSURANCE, ABSTRACTS AND ATTORNEY’S OPINION • 1. Creditworthiness of the signatory • 2. Review of cumbersome historical information • 3. Market forces and title insurance

TITLE INSURANCE COMMITMENT • See #5

SCHEDULE A • • • 1. 2. 3. 4. 5. Effective Date Proper Insureds and Amounts Correct Title Holder Proper Legal Description Mailing Address, Parcel Number and Valuations

SCHEDULE B-I • Items which need to be satisfied to clear Seller’s encumbrances and vest title in Purchaser ▫ Satisfaction of Mortgage ▫ Dismissal of Pending Actions ▫ Execution of Affidavit

SCHEDULE B-II • 1. Generic Exceptions • 2. Specific Exceptions

GENERIC EXCEPTIONS • 1. Survey Items • 2. Mechanic’s Liens • 3. Parties in Possession or Items not of Record • 4. Recorded Right-Of-Ways • 5. Increased Tax Valuations

SPECIFIC EXCEPTIONS • • 1. 2. 3. 4. Real Estate Taxes Assessments Platted Roads, Easements, Restrictions Financial Matters ▫ Prior Mortgages ▫ Judgments ▫ Public Entity Liens

RECORDING AND ISSUANCE OF FINAL POLICY • See #6

COMMERCIAL CLOSING AFFIDAVIT • See #7

SURVEY See #8 • 1. Carefully review and inspect ▫ Encumbrances ▫ Setbacks ▫ Locate Schedule B-II Items • 2. Proper Technical Certification Language