What can the
buyer do when a real estate deed carries an incorrect legal description of the
property? Perhaps it describes the wrong parcel, or fails
to reflect all land purchased in the sale.
An error in
a legal description of a property has consequences. It can
affect taxes. As lenders extend loans based on a percentage of the
property’s appraised value, footage mistakes can sink a loan approval. If
the error is neglected, disputes can arise later, and they can become the
stuff of nightmares.
bear legal descriptions drafted using early survey methods, pre-dating GPS
measurements. Some have errors in lot descriptions that get passed unwittingly
from one owner to the next—a sort of legal time bomb waiting to take someone by
Continue reading “An Error in the Legal Description of the Deed: What Happens Now?”
A contract for deed sale can
present a convenient alternative to the traditional real estate
conveyance. In this owner-financed deal, the buyer
usually lives on the property upon the execution of the contract.
While enjoying the property, the buyer pays for it in monthly
installments, until the agreed-upon price has been paid in full.
Down the road, when full payment is complete, the purchaser formally acquires the title deed. This event occurs through a warranty deed, which guarantees that the seller is the sole party with any claim on the property to be conveyed – no exceptions, unless stated on the deed.
If things don’t go as planned, and the buyer defaults, recovery of the property can be a time-consuming process. Defaults happen, so a seller should consider having the buyer sign a quitclaim deed as part of the execution of the contract. A quitclaim is a non-warranty deed. It conveys property with no warranty for the title. Through this document, if it becomes needed, the buyer will relinquish any claim on the property.
look at how the contract for deed sale works, and briefly examine the function
of the quitclaim deed.
Continue reading “The Quitclaim Deed’s Function in a Contract for Deed Sale”
You may know
of someone with “life rights” to a property. They are known as life tenants,
and the persons involved have the right to occupy and use their property for
the rest of their lives. This is known as a life estate. While they enjoy the
benefits of the property that any owner would, there are limitations. Life
tenants cannot sell or transfer the property, or mortgage the property in their
own names. Life estates are usually irrevocable once put into place. They are
an estate planning tool that helps avoid probate when the life tenants die. At
the life tenant’s death, the beneficiary files the death certificate in the
local land office and receives title to the property. A life estate deed avoids
the gift tax that would occur if a parent signed over their home to their
children during their lifetime. The life tenant does not include their property
in their will since the life estate deed establishes the owner of the property.
Continue reading “What is a Life Estate?”
Throughout the past decade, blockchain technology has evolved from an upstart concept to early adoption in banking and a host of other industries. Many people are eager to learn about blockchain and how it can change the way we do business.
might wonder, can the blockchain do to remedy the hurdles and risks that
pervade the real estate industry?
The question is now ripe. Today, we can review early examples of blockchain technology in action, modernizing property conveyance. Specifically, blockchain applied to real estate has obvious potential for improving the deed recording process.
blockchain make things better?
Continue reading “The Real Estate Deal, Decluttered: Blockchain and Deed Recording”
home to foreclosure is devastating, no matter the circumstances. To avoid the
actual foreclosure process, the homeowner may opt to use a deed in lieu of foreclosure,
also known as a mortgage release. In simplest terms, a deed in lieu of
foreclosure is a document transferring the title of a home from the homeowner
to the mortgage lender. The lender is basically taking back the property. While
similar to a short sale, a deed in lieu of foreclosure is a different
Continue reading “Understanding the Deed in Lieu of Foreclosure Process”