Butler Act for Title Insurance in Florida
Florida's Butler Act addresses riparian rights, a right bestowed on landowners who own property near a lake, stream or other body of water. The purpose is to encourage homeowners near water to improve their property. Although the act was struck down in the 1950s, it still applies to lands that were improved upon before 1957. Title insurance helps protects a land owner from this gray area of law.
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History
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Originally passed in 1921, the Butler Act, in effect, reenacted a previous law, the Riparian Act of 1856. Like its predecessor, the Butler Act was created to promote and encourage owners of waterfront property to enhance their land. The legislature believed these acts would help promote commerce in the state and improve the land.
Benefits
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Under the Butler Act, individuals who owned waterfront properties were permitted to lay claim to submerged lands near their property. Once claimed, they could then buckhead or permanently fill in the submerged lands.
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Repeal
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Florida repealed the Butler Act in 1957 when it enacted the Buckhead Act that same year. However, the Butler Act's provisions still expressly affect submerged lands that were improved upon by homeowners before the repeal.
Significance
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Although repealed, Florida courts continue to examine, apply and interpret the language of the Butler Act. Typically, the Butler Act is revisited any time the court must determine whether work done on submerged land before 1957 constitutes an "improvement." If the court finds the nearby submerged land was improved in accordance with the act, the owner of the adjoining land is granted rights to the submerged land as well.
Title Insurance Considerations
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Title insurance protects ownership rights to a property from any claims that may be asserted against it. Who owns and has legal title to waterfront property developed before 1957 in Florida may be up for dispute because of the Butler Act, so title insurance helps protects the owner in this situation. The purpose of title insurance is to insulate the owner from financial losses caused by a defect in title. For instance, if Bob buys a piece of waterfront property for a set value thinking he owns all of the land but later the court decides the improvements are not sufficient and in reality Bob only owns part of the land, thereby decreasing its value, Bob's title insurance would reimburse Bob for his losses and litigate the lawsuit on his behalf.
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References
- Photo Credit Florida waterway image by EDawg from Fotolia.com
