Welcome to the International Right of Way Associations

Course 801 Land Titles

801-PT Revision 2 07.10.06.USA

Introductions
Who we are What we do Where we do it
How long weve been doing it

Our goals for the course...

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Objectives
At the end of the two days, you will be able to... Accurately determine current title conditions.
Have knowledge to acquire title sufficient to satisfy the requirements of employers.
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Housekeeping

Schedule
Day One 8:00 - 8:30Introductions, Etc. 8:30 - 9:00Background 9:00 - 9:45Public Records 10:00 - 12:00 Title Information Sources 1:00 - 1:30Who Can Hold/ Transfer Title
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1:30 - 5:00How Title is Held and Transferred

Day Two 8:00 - 8:30Recap and Day Two 8:30 - 10:00 When Title Passes 10:15 - 11:15 Encumbrances 11:15 - 12:00 Staff Title Searches 1:00 - 2:45Grand Finale Exercise 3:00 - 3:30What Ifs 3:30 - 4:00Course Review 4:00 - 5:00Final Examination

Schedule

An 11th century document showing some of the holdings of Robert the Brus.

Public Records
Local County State

Federal
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Local Governments
City Clerk Comptroller Treasurer Assessor Economic Development Agency Department of Public Works City Engineer Other

County Governments
Assessor County Clerk Treasurer Economic Development Agency Department of Public Works District Court Other
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State Governments
Secretary of State Department of Environmental Resources Attorney Generals Office

Other
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Federal Government
District Court Department of the Interior Environmental Protection Agency Other
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Abstract of Title
a chronological compilation of conveyances, court actions, and other facts affecting title to a specific tract of land.

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Abstraction
provides copies of all recorded documents and court actions affecting a specific tract of land.

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Abstract Attorney
interprets the effects of the documents on title and provides a written report containing a legal description of the property searched, vested owners, and all parties having a property interests and their specific interest.
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Title Insurance Company

provides a preliminary commitment for title insurance followed by a title insurance policy, insuring the title of the new owner after the transfer of title.
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The Sovereigns
Foreign Governments
Indian Nations

Federal Government
State Governments Local Governments
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Estates
an interest of a particular degree, nature quality, or extent that one has in property. Individual Estate

Collective Estates
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Individual Estate
is one whose ownership and control is enjoyed by a person free from other rights or controls.

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Collective Estates
is one whose ownership and control is enjoyed by more than one person or entity. Joint Tenancy
Tenancy in Common

Community Property
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Life Estate

 a written instrument by which a person transfers ownership of real property to another.

Quitclaim Bargain and Sales Easement General Warranty/Grant Special/Limited Warranty Statutory Warranty Street/Road/Railroad Trust Fulfillment/Partial Fulfillment Treasurer Guardian Reconveyance/Partial Reconveyance Gift Correction Trustee Release Sheriff Executor/Executrix Survivorship Administrator/Administratix
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Deeds (1)

Deeds (2)
Quitclaim
A deed that grants only whatever title or interest the grantor has to the property without any title warranty.

Bargain and Sales

A deed that does not provide any title covenants, but conveys the grantors entire interest in the property, including any acquired title.
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Deeds (3)
General Warranty/Grant
A deed whereby the grantor will defend title against any and all claims and demands.

Special/Limited Warranty
A deed whereby the grantor limits the warranty to only those acts committed by the grantor.

Statutory Warranty
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A deed form prescribed by state statute.

Deeds (4)
Street/Road/Railroad
A deed, although appearing to convey fee title, conveys only a right of way.

Easement
An instrument in which, a non-possessory interest is granted.

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Deeds (5)
Trust
An instrument used instead of a mortgage.

Trustee Deed
A deed used after a foreclosure on a trust deed.

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Deeds (6)
Fulfillment/Partial Fulfillment
Granted after some or all of the terms of a contract have been met.

Reconveyance/Partial Reconveyance
A deed granted by a trustee on instructions of the lender, after a promissory note has been paid.
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Deeds (7)
Release
An instrument that releases a property interest.

Sheriff
A deed granted as a result of a sheriffs sale.

Treasurer
A deed granted by a treasurer after a tax foreclosure.
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Deeds (8)
Executor/Executrix
A court approved deed associated with the terms of a will.

Administrator/Administratrix
A court approved deed when someone dies intestate.

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Deeds (9)
Guardian
An instrument whereby court approval is received prior to the property transfer. Survivorship Usually granted between spouses to establish transfer rights. Correction Used to correct errors.

Gift
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A deed for a nominal consideration.

Other Means to Transfer(1)

Judgments Eminent Domain Actions to Quiet Title Divorce Decrees Operations of Law Escheat Prescriptive Rights Bankruptcy Death and Probate Map Filings and Plat Dedications Vacations Abandonments
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Other Means to Transfer

Judgments (2)

Eminent Domain
Governments right to take private property for public use.

Actions to Quiet Title

Actions to determine ownership.

Divorce Decrees
In community property states, divorce decrees may vest title in one person.
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Other Means to Transfer

Operations of Law and Statutory (3)

Escheat
The reversion of property to the state.

Prescriptive Rights
Establishes rights in the property of another.

Statutory
Transfers property from one government to another.
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Other Means to Transfer

Bankruptcy and Death/Probate (4)

Bankruptcy
The administration of an insolvent debtors property.

Death
Testate: with a will. Intestate: without a will.

Probate
The process of proving in court that a will is valid.
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Other Means to Transfer

Maps and Vacations and Abandonments (5)

Maps
A declaration dedicating streets, etc. to the public.

Vacations
A governmental process by which the publics rights in property are relinquished.

Abandonments
A method to remove an easement.
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Interests

Definitions

Eminent Domain

4. The right of government to take property from a private owner for public use. 10. Actions to determine ownership, such as the settlement of a boundary dispute.
11. In community property states, may vest title to property in only one person.

Action to Quiet Title

Divorce Decree

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Interests

Definitions

Escheat

8. The reversion of property to the state.

5. Establishes rights (easement) in the property of another. 12. The administration of an insolvent debtors property by a court. 3. Having a valid will.

Prescriptive Rights

Bankruptcy

Testate
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Interests

Definitions

Intestate
Probate

6. Having no valid will.

11. The judicial determination that a will is valid. 7. A declaration dedicating streets, parks, etc. to the public.

Plat Dedication

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Interests

Definitions

Vacation

9. Government relinquishing its rights to property.

2. A method to transfer property from one government agency to another.

Statutory

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Agreements, Contracts, Options...

An agreement expresses the willingness of parties to agree to terms. A contract is an agreement that creates an obligation to do something. There are remedies for breach. An option is a right to buy or sell agreement.

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Contracts
Purchase Agreements An agreement to purchase, which, when accepted by the seller, becomes a contract. Land/Real Estate Contracts An installment purchase contract. Escrow Instructions When signed by the buyer and seller, it becomes a contract for an escrow agent to implement.

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Options
Option Agreements The right, or option, to purchase at an agreed to price, before a specific date. Lease/Purchase Agreements A lease with the option to purchase at predetermined terms.
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Other Instruments
Permits/Licenses
Authorize entry on to property for a specific purpose. Usually can be revoked at will.

Franchise Agreement
Rights granted to railroads and utilities to use assigned corridors within the public right of way.

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Day One Recap (1)

Looked at public records, where we look
(local, county, state, federal) and what we look for.

Talked about title information sources

(abstracts of title, abstract attorneys, title companies)

Discussed The Sovereigns (foreign,

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Indian, federal, state, local) and others (individuals and concurrent/groups) title holders.

Day One Recap (2)

Spent most of the afternoon talking about estates (individual and collective), instruments (mostly deed types, the elements and requirements of a deed), other instruments, and agreements, contracts, options, and other instruments.
At various times throughout the day, we did some exercises.

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Day Two (1)

Specifically, we will discuss:
When title passes Encumbrances Staff title searches What Ifs (when other concerns, problems, or situations arise) And we will do a couple of exercises, especially a grand finale exercise and then the exam.

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Voluntary Transfers
A voluntary transaction is made from a persons own free choice and consent. There is no legal requirement to do so.

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Involuntary Transfers
An involuntary transaction is made without a persons own free choice and consent.

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Encumbrance
is a claim against property.

There are two types:

Liens for the collection of money Rights to use and control
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Staff Title Searches

Taxing Authority Offices

Recording Offices Indexed by Name Indexed by Documents Indexed by Location

Court Records
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Title Checking (1)

Step One: Have the name of one of the property owners in the chain of title. Step Two: Have the property description. Step Three: Go to the office that records deeds in the jurisdiction where the property is located.
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Title Checking (2)

Step Four: Locate the owners name (which you already know) in the "Grantee" Deed Index Book. (The "Grantee" Deed Index Book lists conveyances alphabetically by Grantee name.)
Step Five: Determine the "Grantor's" name.

Step Six: Check the "Grantee" Deed Index Book for his/her name to determine who conveyed the property to him/her.
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Title Checking (3)

Step Seven: Repeat the procedure to trace owners back for the required number of years. Step Eight: Check each owner's name in the "Grantor" Deed Index Book for conveyances out, such as: Deeds of Trust/Mortgages Timber Rights Conveyances Sales of Partial Interests Easements

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Title Checking (4)

Step Nine: Check each conveyance in the Deed Book for:

Special Stipulations Reservations Life Estates Covenants Other

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Title Checking (5)

Step Ten: Check each Deed of Trust or Mortgage for payment "Satisfaction. Be certain that the loan instruments do not contain an "open-end" clause. Step Eleven: Check for materialman's, laborer's, architect's, surveyor's, or engineer's liens.
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Title Checking (6)

Step Twelve: Check each conveyance to be certain that the description covers the property being searched. Step Thirteen: Check each conveyance for proper signatures and witnesses.

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Title Checking (7)

Step Fourteen: Check plats (usually in separate Plat Books) mentioned in conveyances for:

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Property Description Covenants and Restrictions Building Restrictions Set-back Requirements Dedication and Acceptance of Streets Other Encumbrances

Title Checking (8)

Step Fifteen: Check the Lis Pendens Docket for any lawsuits pending which would affect title to the property. Step Sixteen: Check General Execution Docket for judgments or liens against the property. Step Seventeen: Check Homestead Exemption and Attachment Docket.
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Title Checking (9)

Step Eighteen: Check Federal Tax Lien Book. Step Nineteen: Check Divorce and Suit Docket. Step Twenty: Check Mortgage Book. Step Twenty-one: Check Lease Book. Step Twenty-two: Check Motor Vehicle Bond Book.

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Title Checking (10)

Step Twenty-three: Check Office of the Ordinary (Judge of Probate Court) for:

Probation of Wills Year's Support Administration of Estates Lunacies, Incompetents

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Title Checking (11)

Step Twenty-four: Check Assessment Dockets for:Street paving, sewer, water, or other assessments. Step Twenty-five: Check Tax Records back seven years for unpaid taxes.

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Title Checking (12)

Step Twenty-six: Determine if anyone other than the owner is in possession of the property. If so, he/she is assumed to have some rights. These rights must be determined.

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What Ifs...
WHAT IF (divorce actions)? WHAT IF (encroachments)? WHAT IF (Death of an owner)?

WHAT IF (Misrepresentations)?
WHAT IF (Leasehold interests)?
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Objectives
Right now, you should be able to... Accurately determine current title conditions. Have knowledge to acquire title sufficient to satisfy the requirements of employers.

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Thank you!
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801-PT Revision 2 07.10.06.USA