Arkansas Standards for Examination of Real Estate Titles
In Arkansas, attorneys and non-attorneys perform title examinations, also known as title searches, in advance of the sale or refinance of real property. In 2009, the Arkansas Bar Association adopted revised "Standards for Examination of Real Estate Titles," guidelines for Arkansas title examiners, which include significant changes from earlier versions.
Other People Are Reading
-
Significance
-
Real estate agents handling the sale of a property or banks refinancing a property can order a title examination from title agencies or attorney offices. Real estate contracts require the seller to transfer marketable title, free of all encumbrances. The title examination results in a written report for all parties showing any liens or judgments against the property.
Functions
-
Arkansas, like half of all states, according to RealtyTrac, uses both mortgages and deeds of trust to secure loans to purchase or refinance a property. Title examiners search property records for both documents and ascertain that all prior mortgage liens on the property have been released of record. Examiners also determine that there are no personal judgments against the property's owner or owners, outstanding tax liens on the property or other adverse matters of record that would prevent transfer of the property to a new owner or would harm a new lender's beneficiary interest.
-
2009 Revision
-
The Arkansas Bar's revised standards follow statutes enacted over the past decade. In 2003, the Arkansas General Assembly joined the majority of state legislatures in abolishing the common-law Rule in Shelley's Case, which relates to certain future interests in real property and trusts, for any document prepared or executed after July 16, 2003. In 2005, the Legislature established the use of beneficiary deeds, which a grantor may record to transfer real property upon his death, and, in 2007, it codified the Uniform Rule Against Perpetuities, which essentially keeps a person from putting stipulations in his will that will affect distribution of assets well after the person's death.The revised standards also reflect the availability of Certificates of Trust, allowing a grantor to record in the county clerk's office notice of the existence of a trust without having to record the entire trust document.
-
References
- Arkansas Bar Association: Arkansas Real Estate Review
- RealtyTrac: US Foreclosure Laws Comparison
- Off The Marble: Arkansas Code Section 18-3-101 Statutory rule against perpetuities.
- Off The Marble: Arkansas Code Section 18-3-104 Exclusions from statutory rule against perpetuities.
- Off The Marble: Arkansas Code Section 18-3-303 Rule in Shelley's Case abolished.
- Off The Marble: Arkansas Code Section 18-3-608 Beneficiary deeds - Terms - Recording required.
Resources
- Photo Credit for records image by Maya Kruchancova from Fotolia.com
