RE Law 15 0 0


alright chapter 15 DS cases so why do we
know in general about these why our deeds required what are these that’s yet
that’s our way of conveying real estate title how do you convey a car car title
a little funky piece of paper a boat personal property a little funky piece
of paper that if it’s a title vehicle with the county but in real estate we
don’t have that little teeny funky piece of paper we have a deed and then we have
other things to get taxed to our deeds so it’s a legal instrument conveying
title to real property required in everything we do
this is nationally it’s not just Ohio this is a national way that we do real
estate we have different types of deeds we have a warranty deed it’s the deed to
conveys title and warrants that the title is good and free of liens and
encumbrances so we’re out there trying to sell our property we’re telling
people we’re going to give you a warranty which means wherever their
awards are title and tell you our title it’s so good that we’re going to tell
you we should be buying in title insurance and everything else well in
other parts of the country that’s exactly what they’re doing in Cincinnati
the buyers always said well we don’t trust you anyway we’re going to buy our
own title insurance but the whole idea behind this warranty deed is it’s a
seller saying I’ve got such a good property I’m going to go ahead and now
I’m going to tell you that I can protect the deed and give you a good title general warranty deed full warranty deed
conveys sellers title contains covenants of title or warranties there’s five
customary covenants so it’s covenants a season this season you might see this
word somewhere else season is the Covenant of the right to convey the
seller guarantees that his ownership of the property is in existence and they do
have a right to convey covenant against encumbrances assurance that at the time
of the conveyance the property is free of encumbrances this is an encumbrance
they know about they haven’t gone and done anything sign paperwork or anything
except there’s always utilities so whether they like her or not those
encumbrances exist but they haven’t given somebody else the right to drive
across their driveway to get the property behind or if those encumbrances
exist they’re upfront about them they’re going to be showing on a tire report and
the title company’s going to say that these things exist with the property and
there’s no way around because encumbrances easements run with a land
cover no quiet enjoyment warrants that the buyer will not be evicted by someone
with superior title in other words we’re going to protect your title we’ll defend
against your title covering a warranty that warranty will defend against title
of lawful claimants and covenant of further assurances that means the
grantor will perform and do anything paperwork wise they has to be done down
the road this could be five years ten years down the road where they could
come back and say wait a minute we there’s a title problem here we bring
paperwork back and we need you to sign this because we found it a cloud in the
title we want a broken chain we want to fix this
so this says we’re going to do this so this is a job warranty need full
warranty deep this is the best deed that we can get
from any time we’re buying property it’s what we’ve come to expect in the
residential world that we’re going to get a full warranty deal the special
warranty eat our limited warranty deed restricts the extent of the sellers
warranties anytime you’re doing real estate with commercial properties you
can’t give a full warranty deed you can only give a special warranty or limited
warranty deed there’s other reasons why in your lifetime that you’ll run across
things where you’re not going to give the general of a full warranty d but for
most residential we expect full other types of real estate we expect special
warranty you’re limited the bargain sale deep deep conveys title with no
warranties this would also be a sheriff’s D no warranties you buying it
from the sheriff steps because there’s a foreclosure action or we got it back on
tax hey or whatever but we’re selling on show
steps we’re just going to give you a deed that lets you have title but we’re
making no warranty about prior history this is what investors buy all the time
when they’re buying property for sale on steps this is why we tell investors go
after you close go get title insurance it doesn’t mean you’re going to buy a
title without problems but you can at least have somebody investigate the
title and you can work on curing problems if we can find what the
problems are quick claim deed is instrument that transfers the grantors
interest only does not purport to convey title so it’s usually using divorce
settlement I said when I first started selling real estate one of the guys I
worked with came to me and said sign this deed I bought a house with a friend
of mine I’m gonna go buy another house with my wife my family all I want to do
is get out I don’t want money I just I’m quick cleaning my feet I
don’t want any more title interest I want no more responsibility so I want to
give a quick claim deed to walk away from the property a fiduciary deed is
the purse is placed by a law in a position of trust so we did fiduciary
deeds fiduciary responsibilities when I was a trust real estate manager that’s
all we gave was producer eby’s for trust properties again fiduciary we’re not
going back in history we’re just saying we have the legal ability to give you
title so it’s essential elements of a deed kind of like a contract we got to
have certain things that are spelled out we always have words of conveyance so
include grant convey or bargain we’re going to give this grant this property
we have to have profited grantor so it can’t be a miner miners can sign deeds
and will sign deeds but they’re avoidable contracts much like a contract
the miner can sign a deed – so one of the things we have title companies you
have to give your driver’s license they want to verify the people that grantor
the people they’re signing the deed have the who they are say they are but
they’re also looking at the eight to make sure that they’re dealing with
people aren’t miners mentally incapacitated so evidence of the
grammars incompetency must be clear and convincing to cancel the deed for lack
of mental capacity we are people with dementia in Alzheimer’s and have clear
moments you get that person to sign that title one they had a clear moment and
then a year from now or weeks from now and they’re no longer having clear
moments you may have issues trying to play it but they they happen to have a
series of great time where they could sign this or do this this could be
challenged corporations special rules apply what once the miner weeks reaches
majority when they become 18 if they don’t react some certain period of time
they gave up all rights to cancel they have to react to a certain period of
time so when that miner let’s say a miner was 18 they were 17 when they did
the deal and they’re 25 now and they realize they got screwed
that’s I should have done that deal I’m gonna go back and say it’s voidable
sorry you waited a little too long so you would need to do it I like real soon
after you reach majority corporation special rules apply
corporations have meetings minutes and meetings they have corporate resolutions
that say certain people the corporation are allowed to sign documents when I
worked in Ohio casually it wasn’t the CEO
it wasn’t the present wasn’t the controller it was our treasurer they had
the authority to sign all our legal doctrine estate documents so I had a
corporate resolution that was releases that was for deeds for everything we
have corporate resolution I kept that handy in my desk in a file because if I
ever if somebody asked me for I had it available one in ten times that I signed
leases somebody asked me by the way or corporation where’s your corporate
resolution so a lot of people weren’t really
investigating what they should investigate it was always available I
didn’t volunteer it to anybody but I had it available if they asked for it
same thing when a corporation site sells real estate corporations need to have
the person of authority never assumed that they’re the president CEO there
before they sell real estate get the quick resolution so if you’re dealing in
commercial real estate this is one of those things you learn to look and ask a
few more questions about to make sure that you have a document that’s good you
have a transaction that’s good sometimes corporations may say we don’t have the
authority there is a person as an authority we may have to have a special
meeting to actually have an action to sell real estate so it depends upon how
it’s set up how a corporation set up partnerships you have Uniform
Partnership Act that allows certain partners to sign things general partners
things like that to sign identifiable grantee the D does not convey title
unless it names an existing identifiable grantee so the D can’t name a
corporation well it can name a corporation but there’s got to be a more
about it that it’s doing it but you actually want to name something that
you’re granting it to not just granting to John Doe it has to be a living
existing type of thing adequate legal descriptions most courts interpret works
of a description liberally in order to have a hold of conveyance in other words
if it’s not totally accurate they’ll let it go through to in order to let the
conveyance go through but we have fact checkers we have people title companies
they’re checking to make sure the deed illegal descriptions are written
properly proper execution has to be signed by the Grand Tour only the
grantor signs the grantee doesn’t sign but the grantee has to be named they
have to be a test attestation in other words it should be witnessed by the
execution of an instrument subscribing somebody’s witnessing when they’re doing
it some states require the acknowledgement I’m a notary some states
require a notary or an attorney actually acknowledged and maybe another witness
even to acknowledge in most states because
I’m a notary I can notary and witness so if they just need one witness my notary
signatures fine if they need to I can be one and then there’s somebody else
general power attorney written instrument operating a person the
attorney-in-fact act as the agent and by the way if you ever want to be a notary
in state of Ohio you read this little teeny pamphlet can you take a text then
you’re done I was a notary in 1983 I haven’t seen the book since then I renew
it every five years it’s no big deal and you can only charge $2 now to be a
notaries and if you charge too much you can lose your notary so I never charge
anything if you need notary you need to tell me I have a little kid I travel
with but it’s in my desk drawer you know I became another Hillary when I was the
assistant manager then quite a building because all of our leases required her
signature so they asked me to become a notary so that I could literally help
our tenants sign leases delivering acceptance the D does not transfer until
delivered by the grantor and accepted by the grantee so this is when you have
these escrow closings and all these other things that are going on somebody
still needs to deliver that deed to somebody can’t just be shoved in a
drawer it needs to be delivered generally it’s
thought of being delivered when you’ve recorded it and then you deliver it
afterward but you still want to make sure that delivery happens the escrow
again process where money or documents delivered to and held by a third party
until the terms and conditions the escrow groomers satisfied but that
escrow officer still records still has to make sure they get deliver it what’s
the best way to do delivery today return receipt requested but FedEx typically
will say FedEx is the easier better way of doing it but recently with the storms
I was trying to FedEx a couple weeks ago and I couldn’t get FedEx to work because
there was a storm area so I end up sending that’s I’m certified mail
because certified mail didn’t know better but certified mail flix longer
certified mail can take week ten days FedEx you know you can do it overnight
but usually we just say we’re gonna FedEx something now to get out
that that FedEx that may not be FedEx parrot might be another Hillary company
deed restrictions a conditioning the instrument or covenant a restrictive
covenant restrictive covenants or provisions that limit the uses that may
be made of the property they’re not a zoning kind of a thing to get the
property they’re their zoning anyway restricted covenant may say you gotta
have a certain color certain style Ruth you can’t put a fence up or if you put a
fence up you has to have this kind no are these parts at the house you know
those are restrictive covenants how you how the land is used you will find
restrictive covenants in every type of PUD
plan your development you’ll find them in the neighborhoods that have the
little entry areas because these neighborhoods are part of a planning and
development you’ll find them in all condominiums there’s a restrictive
covenant I have tons of restrictive covenants of shopping centers because my
restrictive covenants talk about users you can’t have certain kinds of users as
long as this users here or you have to maintain these certain key storefronts
or tenants can get out of their leases yeah
restrictive permit would still be fee simple absolute you’re still giving
they’re buying the property they’re still getting title to it it’s just a
limited how they can use it and restrictive covenants if they’re written
in a way that don’t meet Fair Housing they’re no longer valid
my parents had restrictive covenants on their property in 1962 that they
couldn’t sell to a person of color when fair housing laws came into fact that’s
still in the history that’s still in the paperwork in there when I go back and
research the history but it’s no longer valid so the courts will never enforce
that so any kind of restrictive covenant that that doesn’t meet those kind of
requirements the court will just strike it it’s no good anymore affirmative covenants typically are more
positive they talk about how you can build fences how you maintain party laws
provide railroad crossings join and pay dues they’re always more
positive that’s why they’re called it from there still requirements where
these restrictions are doing negative these affirmative covenants are more in
the positive and how the worded but they do require in your assessment homeowners
association maintenance facilities things like that so again covenants
whether they’re permit or restrictive you’ll find in every PUD every kind of
you have a permanent covenants as well and then the covenants conditions and
restrictions again more part of it commonly found by laws of plan
communities operation requirements established by the ruling board the
purpose is to enhance the protected value of the neighborhood as a whole
property value of individual parcels so I worked with this guy lived this little
neighborhood in Loveland you just get ready paint his house his next-door
neighbor one day so I’m roofing and so then he was gonna paint he’s bragging to
his neighbor back he was gonna do the neighbors said hey whatever you do make
sure you read this because the guy on the other side of you belongs to the
Association and as soon as you do something wrong they’ll let you do it
wrong he’s gonna come and force it make you do it right so that’s when he had to
pull out all this paperwork that he bought the house worth to realize he
couldn’t paint the color he wanted the paint he had to go back and change it
fortunately the neighbor advised him otherwise he would have paid a painter
to do it and paid a painter to come back and redo it so those kinds of things
exist whether you know it or not something to think about when you people
you know you’re representing people buying selling houses where are they
looking what kind of neighborhood is it some of these neighborhoods aren’t as
obvious you know you usually when you see the little wall to test aside a
neighborhood from another main road that’s assigned to everybody okay where
are the covenants what do you belong to what do you have to do as a result of
living here but some of those neighborhoods aren’t as easy to identify
anymore if they’re older again this is about a roots are doing their homework
knowing where these properties are what what are they the few states have passed
legislation that provides for the nation of these retail restrictions when
they’re old the covenants can be terminated by release by waiver by
abandonment but the methods are usually impractical so what
these covenants are established it’s very hard to get them removed and that’s
it for deeds any questions about he’s given notice he abused but the recording
of the deed is actual notice to the world so if he doesn’t so it’s saying
that the purchasers failure to report the deed
how’s that going to then affect eventually he goes to sell it could make
it hard for him to sell because they can’t prove which one was it
number three which one fifteen number three thank you yeah he could have a
hard time trying to transfer title again and what he needs to do so he didn’t
record it when him again it’s ten years later find damn paperwork
they recorded and that’s where title companies you lose paperwork title
companies should be able to find the paperwork for you that’s another reason
for having title insurance somebody has paperwork somewhere that
you can find a

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