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TITLE INSURANCE PRIMER
THE PUBLIC RECORDS
In the United States we maintain a public
records system that varies from state to state. This system is controlled by
"recording statutes." Simply, this means that in each and every county there is
a public office where people may have their deeds or other written instruments
relating to title recorded in permanent record books. The public records provide
constructive notice to everyone as to the rights and interests of parties in a
particular piece of property. There may be other rights and interests that are
not disclosed by the public records (i.e., secret marriages, incompetency,
unknown heirs, forgery, etc.). The public recording offices and their records
constitute the most important source of information about title to real estate.
The offices in which these public records are maintained have different
names in different states. In fact, there usually are several different
offices in each and every county. One office may be for the recording of
deeds, mortgages, and documents pertaining exclusively to land. Other
offices in the same counties may contain the records of other matters
affecting the title to the land. Lawsuits, marriages, divorces, insanity
proceedings, and probate may all affect the title to the land. Still
other offices may contain the records relating to taxes against the
properties or, in some instances, recorded surveys.
In a very limited number of states the Registered Land System (also
known as a "Torrens System") is used. Under this system, a court
proceeding has been brought naming parties who have an adverse interest
in the property. If everything in the proceeding is completed and
handled properly, the plaintiff is said to have a good title as of that
date. This title, however, is not guaranteed by the state. The Torrens
System has been abandoned by most states primarily because the
associated court proceedings complicated title transferring and delayed
real estate sales proceedings caused extra and unnecessary expenses.
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