Methods of Showing Title

Title policy

Also known as title insurance is like any other insurance policy but it offers far more security to the buyer than the abstract method. It insures the lender against financial loss and obstruction of defects in title and real property. It can be purchased to insure any real estate property against claim including a lease and easement. There are a few methods of showing title.

1. Tenancy in common (party to two or more persons) – Here the ownership is divided equal (or unequal) no of interests.
2. Joint tenancy (party to two or more natural persons) – herein, ownership interests must be equal. Possession and control is equally distributed. Co owner’s interests not subject to liens of other debtor/owner but sale can be done on the death of a co-owner or debtor.
3. Community property (party to spouses or domestic partners) – herein, presumption from marriage or domestic partnership can be designated in deed. Both spouses must consent to transfer or mortgage. To clear the debt of either the spouse or domestic partner the property can be subjected to forced sale. The spouse gets qualified survivorship rights and any one of the partner may get tax advantage.
4. Community property with right of survivorship (party to spouses or domestic partners) – The consent of the spouses of domestic partners must be included in the deed. Also both partners must consent to transfer or mortgage. The right of survivorship is gained and surviving partner may get tax advantage.

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Methods of showing title.

Within _________ days from the date of this agreement, the seller shall deliver to purchaser one of the three following:
(1). A complete merchantable abstract of title composed of originals or merchantable copies, or both, brought down to the date of this agreement, showing title of record in proposed grantor.
(2). Guarantee policy of _________ Title Company, in its usual form, guaranteeing purchaser against loss or damage to the extent of the purchase price by reason of defects in or liens upon the title of the proposed grantor to the premises, subject only to the following matters: (a) rights or claims of parties in possession not shown of record and questions of survey; (b) mechanics’ liens, no notice of which appears of record; (c) special taxes or special assessments, if any, which have not been confirmed by a court of record. Such policy to be conclusive evidence of good title subject only to the exceptions stated in; provided that, temporarily in lieu of such policy, seller may within the time specified, furnish the customary report of _________ Title Company on the title, in which case the seller shall deliver such policy to purchaser at the time of delivery of deed and payment of purchase price. Seller upon furnishing such report shall not be in default for failure to furnish such policy until five days after written demand for it by purchaser.
(3). An owner’s duplicate certificate of title issued by the registrar of titles of _________ County, _________, or a certified copy of it, showing title in the proposed grantor in the deed, together with a search made by the registrar to the date of this agreement for unpaid taxes and special assessments.
Seller shall have five days from the date of this agreement to order or apply for evidence of title by any of the above means. Seller shall have three days after receiving evidence of title to deliver it to the purchaser or to notify the purchaser in writing that seller is ready to deliver it. The time for the seller to present evidence of title to the purchaser shall not exceed 30 days from the date of this agreement.
In lieu of the foregoing three options seller may, with purchaser’s written consent, furnish the written opinion of an examiner of titles appointed under the provisions of an act concerning land titles showing the condition of title on or after the date of this agreement.