Edina Realty’s 2016 Realtor Continuing Education, Cont.
[Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.]
What does a former corporate attorney who’s been selling real estate for over 14 years learn at continuing ed? (at an excellent class yesterday taught by Edina Realty’s Jim Young).
Actually, more than you might think.
Which is why I always like going (really!).
In addition to picking up some practice points — and polishing old ones — I learned what’s “limited” in a limited warranty deed.
Caveat Emptor: Which Stick in Bundle is Missing?**
The term arises in residential real estate, especially when foreclosures tick up, because that’s the evidence of ownership banks give Buyers at closing.
So, what are the banks telling Buyers?
Actually, it’s what they’re not telling Buyers: that they don’t know anything about the property’s physical condition or legal history before they became the owner.
Like, 2 months ago.
And anyways, they’re selling “As Is,” which they already told you.
Legal Clouds
Buyers who know all that are properly on notice that they need to up their “due diligence game,” and — amongst other things — carefully scrutinize the property’s prior title history.
The usual concerns: liens (tax or mechanic’s), encroachments, easements or anything else that could potentially be a legal cloud on the title.
**Law schools teach that property ownership is best conceived of as a bundle of rights: to use, to exclude others, to bequeath, to license, to develop, etc.
A limited warranty deed lacks one of the most essential “sticks”: the time or duration that the Seller’s representations cover.
P.S.: Bonus question: could someone legally quitclaim the Brooklyn Bridge to you?
Actually . . . yes.
A quitclaim doesn’t necessarily convey anything to anyone. All it says (albeit in legalese) is, “whatever I have, I’m giving to you.”
It’s most commonly used in the context of a divorce, or sorting out a (legally tangled) estate.
See also, “What If There Were No Hypothetical Questions?” (No, Really); and “Practicing an Ounce of (Legal) Prevention.“
