University:
Indiana University Bloomington
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

315

Pages:

2
Author:

bratrochanter

This text covers key legal concepts regarding property deeds, recording statutes, title assurance methods, seller obligations, premises liability, and the Americans with Disabilities Act (ADA). 1. Property Deeds: o Consideration: Deeds traditionally state a nominal consideration like “one dollar and other valuable consideration,” which may not reflect the actual purchase price. o Property Description: Accurate legal descriptions are essential and vary based on urban (lot, block, plat) and rural (government survey or metes and bounds) locations. o Types of Deeds:  Quitclaim Deeds: Transfer any ownership interest the grantor may have without guarantees of title.  Warranty Deeds: Offer title guarantees, including general (all defects pre-dating the grantor's ownership) and special (defects arising during the grantor’s ownership).  Bargain and Sale Deeds: Imply ownership but offer no warranty, often using phrases like “I grant” or “I convey.” o Execution and Recording: Deeds must identify the grantee, state consideration, describe the property, be signed by the grantor, and usually be notarized. Prompt recording prevents disputes over ownership claims. 2. Recording Statutes: o States have statutes governing the recording of property transactions. These rules vary but generally ensure public access to property interests, helping prevent fraudulent claims. o Priority Systems:  Race Statutes: Priority goes to the first recorded deed, regardless of notice.  Notice Statutes: Later buyers without knowledge of a previous unrecorded deed have priority.  Race-Notice Statutes: Priority is given to those who record first and are without notice of prior claims. 3. Assuring Title: o Buyers can secure assurance of good title by three methods:  Title Opinion: An attorney reviews a title abstract and provides an opinion on its marketability.  Torrens System: Available in some states, this system certifies title with documented encumbrances.  Title Insurance: Insures against title defects, covering potential losses and legal defense costs. 4. Seller’s Responsibilities: o Caveat Emptor and Duty to Disclose: Traditionally, buyers bear responsibility for property condition (caveat emptor). However, sellers must now disclose known material defects not easily discovered by buyers. o Implied Warranty of Habitability: Sellers (primarily developers) of residential property may be liable if the property is uninhabitable due to latent defects, including potential claims by subsequent buyers. 5. Premises Liability: o Safety of Visitors: Property owners must ensure reasonably safe conditions. Liability can arise if negligence results in injuries. o Security against Criminal Acts: Owners may also be liable for not preventing foreseeable crimes through adequate security measures. 6. Americans with Disabilities Act (ADA): o Accessibility Requirements: Title III of the ADA mandates that public accommodations (hotels, restaurants, theaters, etc.) must be accessible to individuals with disabilities. This includes making physical modifications to premises when feasible. The text provides an overview of various legal frameworks related to real property, emphasizing the importance of accurate recording, disclosure, and security to safeguard property rights and ensure public and private interests in property ownership and safety.