Title Insurance Underwriting - eondirect.com

1 1 by Morrie Erickson, Attorney Titleplus! Subjects Covered Title , ownership & conveying Easements & licenses Mortgages, vendors liens & mechanic s liens Oil, gas & mineral rights Federal tax liens Judgment liens Other liens Indiana Land Title Association Holding & Conveying Natural persons Severalty TICs & joint tenancies Presumption of TIC (IC 32-17-2-1) Joint tenancies - survivorship Tenants by the entireties (h&w) Same-sex couples (DOMA - 1 USC Sec 7 & 28 USC Sec 1738C) Adults Minors Indiana Land Title Association 2 Holding & Conveying (cont) Entities Trusts & trustees (Trustees hold, per IC 30-4-1-1) Personal representatives Corporations (for profit & not-for-profit) Partnerships (general & limited) LLCs & LLPs Unincorporated associations Role of Secretary of State Indiana Land Title Association Holding & Conveying (cont) Deeds General warranty (IC 32-17-1-2) Limited/Special warranty Quitclaim (IC 32-21-1-15) Trustees, PRs & Com n rs ( convey ) Executed outside USA (IC 32-21-1-11) Mailing address for tax bills (IC 32-21-2-3) Indiana Land Title Association Holding & Conveying (cont) Recitations Authority to sign for entity Resolutions Incumbency cetificates POAs Specific vs.

2 General powers Legal descriptions Indiana Land Title Association 3 Holding & Conveying (cont) Recitations (cont) Individual persons by POA (IC 30-5-8-7) Attorney-in-fact furnishes affidavit Instrument relied on is true copy of POA Named principal is alive POA validly granted & executed Relevant powers have not be altered or terminated If successor attorney-in-fact, original failed or ceased to serve If effective date commences on happening of specific event, that the event has occurred Indiana Land Title Association Holding & Conveying (cont) Reference to recorded encumbrances IC 32-21-1-17 (recording requirements) Reference may be specific to each item Reference may be general ( all conditions, covenants, easements & restrictions of record ) IC 32-20-3-2 (Marketable Title Act) Matters affecting Title must be specifically stated on deeds to survive after 50 yrs Indiana Land Title Association Holding & Conveying (cont) LW&Ts Leases & Memos (IC 36-2-11-20) Conditional sales contracts Memos OK?

3 Contract deduction if Memo (IC ) Options Rights of first refusal Indiana Land Title Association 4 Holding & Conveying (cont) Pursuant to statute Intestate succession (IC 29-1-2-1) Marriage dissolution (IC 31-15-7-4) Tax sale (IC & IC ) Condemnation (IC 32-24-1-1) Indiana Land Title Association Holding & Conveying (cont) Pursuant to statute (cont) Bankruptcy (11 USC 363) Chapters 7, 11 & 13 Automatic stay Personal liability vs. elimination of lien Non-dischargeable debts Sales Pre-bankruptcy During bankruptcy Post-bankruptcy Indiana Land Title Association Holding & Conveying (cont) Pursuant to statute (cont) Adverse possession (IC 32-21-7-1 & IC 34-11-2-11) Entity dissolution, merger, consolidation Successor trustees Indiana Land Title Association 5 Holding & Conveying (cont) By court order or judgment Foreclosure Protecting Tenants at Foreclosure Act ( Title VII of PL 111-12, eff 5/20/09, exp 12/30/12) Rights of redemption Indiana No sheriff s sale for 3 mo after complaint filed (IC 32-29-7-3) Can redeem until sheriff s sale (IC 32-29-7-7)

4 Indiana Land Title Association Holding & Conveying (cont) By court order or judgment (cont) Foreclosure (cont) Rights of redemption (cont) IRS liens (120 days after sheriff s sale) Agricultural Credit Act of 1987 (mandatory restructuring) Resulting foreclosure judgment In rem In personam Indiana Land Title Association Holding & Conveying (cont) By court order or judgment (cont) Foreclosure (cont) Foreclosure-related Short sales Deeds in lieu Sheriff s sales Strict foreclosure Deutsche Bank v. Mark Dill Plumbing Co., 908 NE 2nd 1273 (Ind. App. 2009) Citizens State Bank v. Countrywide, 922 NE 2d 655 (Ind. App. 2010) Indiana Land Title Association 6 Holding & Conveying (cont) By court order or judgment (cont) Marriage dissolution (IC 31-5-7-4) Title changes to TIC Child support (IC 31-16-16) Delinquent treated as judgment lien (IC 31-16-16-2) Orders are lien if on judgment docket (IC 31-16-16-3) Otherwise, unperfected secured creditor Property settlement/division Judgments against spouse (prior & marital) Is decree a conveyance?

5 Indiana Land Title Association Holding & Conveying (cont) By court order or judgment (cont) Successor trustee (IC 30-4-3-29) Partition (IC 32-17-4) Personal Representative (IC 29-1-15) Guardian (IC 29-3-1) Receiver (IC 32-30-5) Execution (IC 32-29-7-1 & IC 34-55-6) Bankruptcy trustee (11 USC 363) Indiana Land Title Association Holding & Conveying (cont) Transfer on death deeds (IC 32-17-14) Eff 7/1/09 Vests Title in beneficiary when O dies Specific requirements in format O may revoke Deed recorded before O s death No beneficiary rights before O s death O s transfer of Title to X ends TOD deed Indiana Land Title Association 7 Easements Interest in land Creation by document Express grant Reservation in deed In writing to be enforceable (IC 32-21-1-13) Describe dominant & servient estates Recording requirements per IC 32-23-2-5 Indiana Land Title Association Easements (cont) Appurtenant easements Run with land Must have benefited & burdened parcels Passes with transfer of each parcel Example.

6 Driveway across adjacent parcel Indiana Land Title Association Easements (cont) Easement in gross Personal right to use another s land No benefited land Does not run with the land May or may not be assignable Example: right to timber another s land Commercial character (IC 32-23-2) Electric transmission lines Gas pipelines Indiana Land Title Association 8 Easements (cont) Blanket vs. defined route Negative (allowing unobstructed view) Presumption of running with land Unless determinable (temp. construction) Even if not mentioned in later deeds (see Jeffers v. Toschlog, 383 NE 2nd 457) Indiana Land Title Association Easements (cont) By prescription (IC 32-23-1-1 et seq.)

7 Implied By necessity Common scheme or plan Termination Terms in document Merger of dominant & servient parcels Abandonment Release Indiana Land Title Association Licenses Personal right or privilege (hunting) May be verbal Revocable Not assignable Do not run with the land Indiana Land Title Association 9 Mortgages Consensual lien (as is vendor s lien) 1st/senior mortgages Priority over prior judgment (IC 32-29-1-4) if purchase money mortgage Non-purchase money Construction mortgages & future advances HELOCs & other juniors Indiana Land Title Association Mortgages (cont) Expiration of mortgages & V/Ls See IC 32-28-4 If maturity date (MD) shown and: Recorded 9/1/82 or >, 10 yrs after MD Recorded <9/1/82, 20 yrs after MD If no MD shown: 20 yrs after execution 20 yrs after recording if no execution date But, <20 yrs, lien holder may file affidavit of MD Indiana Land Title Association Mechanic s Liens Non-conensual See IC 32-28-3-1 et seq.

8 Residential property ( Class 2 structure ) Single-family dwelling or duplex Includes outbuildings Notice to owner w/i 60 days after starting Record lien notice w/i 60 days after finishing Recorded deed to BFP cuts off recording deadline Indiana Land Title Association 10 Mechanic s Liens (cont) Commercial ( Class 1 structure ) Most non-residential property Record lien notice w/i 90 days of finishing Filed by claimant or attorney Release by claimant (not attorney) - IC 32-28-6-1 Public property Lien lasts 1 yr after recorded No-lien contracts (IC 32-28-3-1[e], [f ] & [g]) Indiana Land Title Association O&G & Minerals O&G leases affect Title marketability MTA: IC 32-20-3-1 et seq.

9 Salmon v. Perez, 545 NE 2nd 21 Surface & subsurface rights Eliminating O&G leases (IC 32-23-8) Eliminating mineral int. (IC 32-5-11) Reservation of mineral int. & royalties Indiana Land Title Association Federal Tax Liens Failure to pay taxes (26 USC 6321) Filed in Recorder s office Last 10 yrs & 30 days from assessment Redemption rights after public sale IRS has 120 days Other federal creditors have 1 yr IRS lien on 1 spouse attaches to H&W property Indiana Land Title Association 11 Judgments Indiana Final IN court judgments (IC 34-55-9-2) Lien starts when entered in judgment docket Liens last for 10 yrs after rendition PPTJs - same rules apply IDOR tax warrants under IC Judgment record in Clerk s office 2011 addition of 180-day demand procedure Query.

10 Does JTAC = judgment docket ? Indiana Land Title Association Judgments (cont) Federal For money owed to USA Lien lasts 10 yrs Lien attaches to current & later If recorded in Recorder s office, lasts for 20 yrs, renewable for 20 yrs more Not subject to PMM rule Unless Feds agree IRS has agreed Indiana Land Title Association Judgments (cont) Foreign (other states) IC 34-39-4-1 et seq. Certified by other state or DC Full faith & credit IC 34-54-11-1 et seq. Filed in Clerk s office Judgment creditor must file affidavit Name & last known address of judgment creditor Name & last known address of judgment debtor Notice & mailing requirements Indiana Land Title Association 12 Other Liens Hospital (IC 32-33-4-1) Perfected in Recorder s office Not lien against injured person s Lien against judgment won by injured person Indiana Land Title Association Other Liens (cont) Weed removal (IC ) Prerequisite of ordinance for weed cutting Notice & billi