I
am a Real Estate Agent Instructor here in Florida and qualified to write course
for 39 other states. My specialty course covers Florida’s unique Land
Trust Act, FS 689.071.
In order to develop a better understanding of
the law and its benefits I work my way through random Public Records in Broward
County individuals who have “opted-in” at some time in the past 5 years for
information about foreclosures and short sales. I’m also a licensed
real estate agent, but I’ll get to that later.
An
opt-in inquiry came from an individual giving an address in Plantation and led
me to this particular set of public property ownership records.
The
address given by the inquirer was the address of the property I researched this
week in the Broward Public Records. It
was obvious from the transfer of Deeds that no one, not attorneys, property
owners, transaction agents or their Realtor.
A property changed hands in 1991:
According
to the recorded Warranty transfer activity in 1995 one might assumed that the 1991 buyers may have divorced and the wife received the property in the settlement through a "strawman" company.
According
to the record Pamela S and her husband passed the property on to a Grantee
called Association Relocation Management Company Inc. and then it was passed to
“Pamela C” on the same day.
According
to the records one can make one of two assumptions. Either Pamela
is an accidental common first name between seller and buyer, or there was a divorce
action. For purpose of our discussion of the Title either assumption is irrelevant.
My
point is the fact that this sequence of title transactions is subject to interpretation and a cloud on the title is possible. Four individuals and a corporation--Names were involved in the Titling of the
property.
In Florida this exposure of
private individuals to the property transaction is totally unnecessary. Their seems to have been a transfer of
ownership from one selling couple to another couple then to a corporation and then on to an individual. Were Doc stamps paid by the Corporation? Did the special warranty deed exclude lien issues? Might there be liens on the property, in particular,
a Mechanic, Attorney lien or a RICO notice? If any lien existed but was excluded by the "Special Warranty" exclusions there
could be a risk of Cloud on Title.
The
actions taken under these different Public Record documents involved three parties
on a single day. More important, the deeds involved them as well. Title risks to marketability need not occur in Florida under Florida's Land Trust Act.
In
1991 Florida's Land Trust Act was 29 years old. It could have been used to dramatically simplify
and privatize the affairs of all parties involved. Here is how it would have worked: There would have been a single title
issued in 1991 to a Land Trust Trustee for the buyers. The purchasing couple would have become the
beneficial interest holders of the property under a simple direction to the Trustee by the original beneficial interest holders.
There would then be no further personal involvement on the public record
because:
- All actions related to ownership of the property would have been under the Trustee.
- The 1995 ownership transfer would have occurred in private with the Direction to the Trustee to assign ownership to the “single woman”.
- The Relocation company would have not need to be involved.
- Title to the property would have remained to this day in the name of the Trustee despite several 2nd mortgage borrowing actions by the owner in later years.
- Today the Beneficial
interest holder could sell Her interest or give it away or trade it under IRS
Code 1031.
There would never be a risk to Title clarity or marketability.
Today
the property we examined and its equity is recovering nicely. The estimated value from
Realtor Resources is shown below:
Given
the challenging issues and recording delays of public records at Broward County my analysis of the personal
history of this property may be off base, or it could be right on the money. That is the point here.
Public
Records are not always correct but they are ALWAYS PUBLIC and they are always the legal determinant of ownership privilege. When your name is associated with a Title, it’s
as if you’re receiving either a good or a bad credit report and there is
nothing you can do about it. When your ownership is placed into a land trust you are no longer liable, you avoid probate, the price of buying and selling is off the record and transfer of ownership is based on a signature, a trust relationship and Florida Statutes 689.07 and 689.071
If
you are interested in converting your property into a Florida Land Trust, call
me for an appointment. It is inexpensive and you can do most of it
yourself with a few forms I can provide to you. And if you are interested
in selling your home in the near future I’d appreciate the opportunity to work
for you when the time comes.
Next week we'll look at another property case from the annals of Broward County.
Michael Belgeri, TRC, CDEi
Florida 360 Realty
American Real Estate License Law Organization
954 465 6069
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