Adventures in land ownership

[KnowLaw]

If they can do title insurance, couldn't the just as easily conduct a title abstract?

Section 9 (b)(iii) with the affidavit makes me wonder too ...

Precisely, shikamaru. Tree Farmer was correct in his evaluation of this deal: he got attorned (i.e. screwed)!

In fact the whole Section 9 (b) i, ii, and iii is a dead giveaway that this contract maintains the statutory status of the contract. Title insurance is only recommended in such contracts in lieu of an abstract of title. Whenever you agree to such a contractual stipulation, you operate within the statutory realm.

Also, the fact that a Warranty Deed was issued is also a dead giveaway as this is only evidence of "title under color of law," but not yet title in fact. If you can trace the land back to a land patent, you're in much better shape with regard to being able to claim an "allodial" nature of ownership. Better yet would have been to obtain a Grant Deed from the seller, forego the involvement of the attorney, and not record that instrument with any statutory authority (i.e. the county or the state) but only "notice" them (i.e. the county assessor) of the change in ownership as recordation is now seen as "registration" of property with the statutory authority. When you record a deed these days you've just entered into a contract with the county and the state, which operates as a "kind of" parens patriae in commerce to maintain the commercial viability of the property within their "legal" system of governance. You are, however, under no obligation to avail yourself of the state's services in matters such as this, is my understanding of the matter.

There are ways to correct this. When I have more free time (months away at this point, as I am buried in work that takes priority over any project that would entail a detailed explanation of law in matters such as this) I will return with my findings based on my practical experience and open a thread to explain what I have learned and accomplished and how others can go about following suit. I have recently taken the property I own out of the statutory realm and provided notice of such to the appropriate county officials.

This is not that difficult to understand or to accomplish once you have access to a reading of the law that you can rely upon as an ultimate authority. I've spent the better part of the last two years studying this and have all the legal citations (or at least a great many of them) to back it up.

[shikamaru]

The warranty deed appears to make the seller the underwriter for the title of the land if title is determined to be bad by a court ....

Registration is necessary for purposes of taxation and I suspect bond-writing by the (municipal) corporation.

[Michael Joseph]

The warranty deed appears to make the seller the underwriter for the title of the land if title is determined to be bad by a court ....

Registration is necessary for purposes of taxation and I suspect bond-writing by the (municipal) corporation.

The Warranty Deed does not appear to - the Warranty Deed does exactly that. And In FACT, the GENERAL WARRANTY DEED is for all time past and present.

If you are gonna play with DEEDS - you need to make yourself familiar with - a BARGAIN AND SALE DEED.

Look it up for yourself - you will be glad you did!

[shikamaru]

The Warranty Deed does not appear to - the Warranty Deed does exactly that. And In FACT, the GENERAL WARRANTY DEED is for all time past and present.

If you are gonna play with DEEDS - you need to make yourself familiar with - a BARGAIN AND SALE DEED.

Look it up for yourself - you will be glad you did!

I am most partial to quitclaim deeds myself .

[Michael Joseph]

I most partial to quitclaim deeds myself .

yes that one is very good. I got a bridge ON the territory California to sell to you - will you accept a "quit-claim" deed? I would not take a "quit-claim" deed unless I really trusted the one who caused the equity transfer was lawfully with a simple FEE.

[shikamaru]

yes that one is very good. I got a bridge ON the territory California to sell to you - will you accept a "quit-claim" deed? I would not take a "quit-claim" deed unless I really trusted the one who caused the equity transfer was lawfully with a simple FEE.

And this is why you request the title abstract along with the quitclaim deed.

[Michael Joseph]

And this is why you request the title abstract along with the quitclaim deed.

I suppose it depends of perspective. If I can sell you an interest by way of assignment, by and thru the Trustee, then we don't need a DEED. This is much,much more superior to any of these DEEDS discussed herein.

If you are one who wants a DEED, then I am going to issue one of three - Limited Warranty Deed, Bargain and Sale Deed or Quit-Claim. If you want a Title Search, then do it yourself or pay an attorney. If you are one who uses banks, then you will be forced to get a title search.

But I can guarantee, that in the Purchase and Sale Agreement, I am NOT paying for it.

----------------------------

Transfer into Trust - Warranty Deed to Trustee. When you want to sell - Assign beneficial interest to another party. Substitute Trustees....have a nice day.

The Trust is Superior.

-------------------------------------

There was one who asked concerning the word "Forever". That's a mighty long time......See the trust.....READ carefully the "TO HAVE AND TO HOLD CLAUSE......I hope after you do you can see the trust.

Reader - the Legal Title is NEVER impaired or even Transferred. It is the equitable Title that is transferred in Trust. Therefore the Property NEVER leaves the Trust - Forever.

Is property the land or the house? If you answer yes, then you do not understand the trust.

[bigred]

The purchase and sale agreement looks pretty standard to me. I believe Section 9 (b) iii pertains only to the Seller, and is designed to ensure that the Feds get their tax due. I don't think its binding on the Buyer.

If I am a Buyer, I don't want a QuitClaim Deed, that provides me as the Buyer no protection. A General Warranty Deed indicates that the Seller is going to warrant the clear title to the property all the way back as far as it goes. If Seller gave a Special or Limited Warranty Deed, then seller is warranting title only as long as he owned property. General Warranty Deed is stronger. Title insurance is just that, if there is a title flaw found, the title insurance will pay off.

[bobbinville]

In most states, you have General Warranty, Special Warranty and Quitclaim deeds. Massachusetts uses different terminology; but the effect is the same. Here's what www.buyersbrokersonly has to say:

In Massachusetts there are three types of deeds that are used for the purposes of real estate transactions: warranty deeds, quitclaim deeds and release deeds. Each type of deed offers varying levels of protection and guarantees against flaws in the title of the real estate being transferred. The vast majority of property in Massachusetts is transferred via a quitclaim deed. Home buyers typically receive the same type of deed from a seller that the seller received when purchasing the property.

Warranty deeds. In Massachusetts a warranty deed generally offers the greatest amount of protection to someone who is purchasing or receiving the title to a piece of real estate (the grantee). A warranty deed includes four basic assurances to the grantee at the time of transaction. The first warranty is that the current owner and seller of the title (the grantor) does in fact own the real estate in fee simple, which assures the grantor has absolute ownership of the property. Second, a warranty deed guarantees that the property is free from any encumbrances (anything that affects or limits the title of the property such as easements or liens) except for those specifically stated in the deed. Third, the warranty deed guarantees that the grantor of the title has the legal right to sell or transfer the property to grantee. Lastly, through the deed, the grantor promises to defend against any legal claims regarding problems with the title that arose not only during the grantor’s ownership period but also prior to that period time.

Quitclaim deeds. Quitclaim deeds differ from warranty deeds in Massachusetts in that the assurances are more limited. The first assurance a quitclaim deed makes is similar to the second guarantee of the warranty deed, which states that the grantor of the title has not made any encumbrances on the property other than those specifically mentioned in the deed. Unlike a warranty deed, however, the quitclaim only covers encumbrances made by the grantor and does not cover any preexisting encumbrances such as easements or restrictions set forth by the municipality. In addition to the first assurance, the quitclaim deed guarantees that the grantor will defend against any legal claims regarding problems with the title that arose during the grantor’s ownership period but not prior to the grantor’s ownership. Essentially a quitclaim provides the same protections as a warranty deed except it limits how far back in time the grantor is liable for any problems resulting from the title.

Release deeds. The third type of deed used in Massachusetts, the release deed, offers the least amount of protection for real estate transactions. A release deed does not guarantee anything and merely serves to transfer a title or whatever right the grantor holds to a specific property. With a release deed the grantor does not need to assure that the title is valid; thus, it ultimately provides no assurances whatsoever.

Title insurance is designed to protect you and/or your mortgagee against title defects -- some which even a diligent title search may not disclose. It also protects you against loss if your conveyancing attorney is incompetent because he blows his money on wine, women, gambling and cocaine (I knew a few, years ago). The title company will pay to defend your title; and it will compensate you if you lose in court. It is NOT offered in lieu of a title abstract; indeed, when I worked for a title insurer in the 80s, we NEVER insured title without having a full 50-year title abstract, or one built on an existing title policy issued by that company.

Having said all that, I will say no more except to observe that a seller is usually required, by the terms of a purchase and sale agreement, to deliver a special warranty deed; so showing up at closing with a quitclaim deed (as the term is used in most states) or a bargain and sale deed will bring the transaction to a screeching halt, and subject you to a claim for damages in court. the only time that you will see a release or bargain and sale deed is when you are buying from a government, an executor, or at a foreclosure sale. You will almost never see a general warranty deed, since no individual is likely to want to warrant against title defects arising from before he/she owned the property. I will also note that, by not recording a deed, you risk losing your property to a subsequent purchaser who has no notice of your ownership but who records his/her deed. Recording the deed (or registering it, if your jurisdiction provides for land registration) is notice to all that YOU own the property.

[Treefarmer]

Precisely, shikamaru. Tree Farmer was correct in his evaluation of this deal: he got attorned (i.e. screwed)!

In fact the whole Section 9 (b) i, ii, and iii is a dead giveaway that this contract maintains the statutory status of the contract. Title insurance is only recommended in such contracts in lieu of an abstract of title. Whenever you agree to such a contractual stipulation, you operate within the statutory realm.

Also, the fact that a Warranty Deed was issued is also a dead giveaway as this is only evidence of "title under color of law," but not yet title in fact. If you can trace the land back to a land patent, you're in much better shape with regard to being able to claim an "allodial" nature of ownership. Better yet would have been to obtain a Grant Deed from the seller, forego the involvement of the attorney, and not record that instrument with any statutory authority (i.e. the county or the state) but only "notice" them (i.e. the county assessor) of the change in ownership as recordation is now seen as "registration" of property with the statutory authority. When you record a deed these days you've just entered into a contract with the county and the state, which operates as a "kind of" parens patriae in commerce to maintain the commercial viability of the property within their "legal" system of governance. You are, however, under no obligation to avail yourself of the state's services in matters such as this, is my understanding of the matter.

There are ways to correct this. When I have more free time (months away at this point, as I am buried in work that takes priority over any project that would entail a detailed explanation of law in matters such as this) I will return with my findings based on my practical experience and open a thread to explain what I have learned and accomplished and how others can go about following suit. I have recently taken the property I own out of the statutory realm and provided notice of such to the appropriate county officials.

This is not that difficult to understand or to accomplish once you have access to a reading of the law that you can rely upon as an ultimate authority. I've spent the better part of the last two years studying this and have all the legal citations (or at least a great many of them) to back it up.

How about giving us some leads in the meantime?
I like to read up on things myself.
Thank you.