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FRECI_9-2 - Lecture Preview Florida Real Estate Commission...

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Unformatted text preview: Lecture Preview Florida Real Estate Commission Course I • What will you learn from this lecture? Pre-Licensing Course for Sales Associates – Two recognized notices of ownership – Distinguish between “title” and “deed” – Different types of title history reviews – Two types of title insurance policies – Essential elements of a valid deed Session 9 – Lecture 2 Title, Deeds, and Ownership Restrictions Copyright, 2004 2 Notice of Ownership Vocabulary Terms • • • • • Constructive notice Abstract of title Acknowledgement • Deed • Lis pendens Actual notice Chain of title Recording documents in public records (verifiable) Each has equal legal precedence 3 4 History of Property in Florida 1821 Some Useful Terms… Acknowledgment • Confirmation that a deed reflects the true intention of the grantor • Must be witnessed and notarized Spain Cedes Florida To United States 1822 – 1845 U.S. Gives Land Grants 19th Century 20th Century Lis Pendens • Formal notice of pending legal action against real property • Filed in county public records • Serves as constructive notice Copyright, 2004 • Physical possession • Spoken word Constructive notice (legal) Copyright, 2004 Actual notice Title Passes From One Private Owner to the Next 21st Century 5 Copyright, 2004 6 1 Title Search Chain of Title Complete, successive history Complete review of a parcel’s history to the “root of title” (last 30 years) Owners Wills Mortgages Satisfactions Divorce decrees Mechanic’s liens • Public records search • Account for all claims on title • Determine if any defects Settle by suit to quiet title Copyright, 2004 7 Copyright, 2004 Possible Breaks in the Chain of Title Types of Title Reports Abstract of title Pros Conveyance of only a partial interest? Conveyance by adverse possession? Inconsistent property descriptions? Fraudulent documents? Inferior deed? Concise summary 30-year history All recorded liens All recorded encumbrances • Past and current owners Missing spousal signature? 9 Non-guaranteed review of abstract by an attorney as to Copyright, 2004 marketability of title Two “Evidences of Title” Title Insurance Commitment Best protection against claims by others Title commitment (binder) Marketable? Nope Details:……… We hereby promise to insure……. ……………. 10 Title Insurance Abstract of title chain Yup • Unrecorded liens • Unrecorded interests • Unrecorded conveyances • Encroachments • Forgery Opinion of title Copyright, 2004 Abstract w/Opinion of Title Cons • • • • Faulty separation of mineral or water rights? Cloud to Title 8 11 Copyright, 2004 • Given upon underwriter’s thorough title search including surveys • May have exceptions • Policy given after closing 12 2 Types of Title Insurance Owner’s policy • Covers homeowner • Based on home’s purchase price • One-time premium (at closing, or when issued) • Not transferable Title to Real Property Lender’s policy • • • • • “Mortgagee title policy” Covers the lender Based on loan balance One-time premium Is transferable to another lender “Title” Deed • • • • Neither is required by law Copyright, 2004 13 Copyright, 2004 Instrument of conveyance Must be signed by grantor(s) Grantee need not sign Include 2 witnesses • Should be recorded 14 End of Lecture At the conclusion of this lecture, complete Quiz 9-2 in the course. Copyright, 2004 15 3 ...
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