REAL ESTATE TRANSACTIONS
METHODS OF TITLE ASSURANCE
• Professor Robert J. Weiler
• October 3, 2012
• Presented by James Havens
• Havens Limited
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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
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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
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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
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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
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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
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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