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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Title company databases. Posted by Ward-CA- on September 26, 2001 at 9:10 AM In Reply to: Re: Title company databases. posted by Gary C. on September 25, 2001 at 10:44 PM : I have a follow-up question to your response above. Assume an owner is in litigation and, in order to appear broke and asset-less, shifts assets to a relative via a recorded quitclaim deed while the litigation is in progress. This quitclaim deed is recorded prior to the judgement being recorded against the now former owner. The asset shifting seems fraudulent. I would think that a judge would recognize this and allow the winning litigants to be able to retrieve the assets from the new owner (i.e., the former owner's relative) or any possible subsequent owner (namely me). : Here's my questions: : 1) Do the judgements create some cloud on the title due to the nefarious transfer of the asset? : 2) If I bought from the new owner, will I get title insurance? : I would think I could based on what you said in the post above. That is, on a grantor/grantee index search at the county recorders office, I can locate the judgement under the now former owner's name. Under the title companies database, which you state is sorted by addresses and not grantor/grantee, they would never find this judgement. If they found out about it and were concerned with the asset shifting, I would think they wouldn't issue title insurance or that they would but it doesn't cover cases such as those above. : What's wrong with my picture? Thanks Ward. : Gary C. =•=•=•=•=•=•=•=•=•=•=•=•=• Gary, when it’s pointed out to a court that a debtor has transferred the title of their property to a relative during litigation the court will treat the transfer as fraudulent and force its reversal. However, if the current owner is a non-related, bonafide purchaser for value and the pre-judgment sale had all the trappings of escrow, title insurance and a new loan, then the court will not set that sale aside. The court will go after the sale proceeds instead. 1. A recorded judgment (abstract of judgment) is a general lien and acts to automatically attach to the title of any real property in the county that’s in the judgment debtor’s name at the time the AJ was recorded and thereafter. It won’t cloud the title of a property that used to be in the judgment debtor’s name, as long as it was switched into someone else’s name prior to the recording of the AJ. Gary, I stated in my previous post that title companies use their own proprietary databases that are based on the legal description of properties, not their addresses. And, precisely because of the problem with general liens that are just in a person’s name, the title companies also create their own special “General Index” to track those items. So any time a title company is doing a title report it will look up all the parties involved (buyers and sellers) in their General Index database and the property in their legal description database. Hope this clears things up. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I have a follow-up question to your response above. Assume an owner is in litigation and, in order to appear broke and asset-less, shifts assets to a relative via a recorded quitclaim deed while the litigation is in progress. This quitclaim deed is recorded prior to the judgement being recorded against the now former owner. The asset shifting seems fraudulent. I would think that a judge would recognize this and allow the winning litigants to be able to retrieve the assets from the new owner (i.e., the former owner's relative) or any possible subsequent owner (namely me). : : Here's my questions: : : 1) Do the judgements create some cloud on the title due to the nefarious transfer of the asset? : : 2) If I bought from the new owner, will I get title insurance? : : I would think I could based on what you said in the post above. That is, on a grantor/grantee index search at the county recorders office, I can locate the judgement under the now former owner's name. Under the title companies database, which you state is sorted by addresses and not grantor/grantee, they would never find this judgement. If they found out about it and were concerned with the asset shifting, I would think they wouldn't issue title insurance or that they would but it doesn't cover cases such as those above. : : What's wrong with my picture? Thanks Ward. : : Gary C. : =•=•=•=•=•=•=•=•=•=•=•=•=• : Gary, when it’s pointed out to a court that a debtor has transferred the title of their property to a relative during litigation the court will treat the transfer as fraudulent and force its reversal. : However, if the current owner is a non-related, bonafide purchaser for value and the pre-judgment sale had all the trappings of escrow, title insurance and a new loan, then the court will not set that sale aside. The court will go after the sale proceeds instead. : 1. A recorded judgment (abstract of judgment) is a general lien and acts to automatically attach to the title of any real property in the county that’s in the judgment debtor’s name at the time the AJ was recorded and thereafter. It won’t cloud the title of a property that used to be in the judgment debtor’s name, as long as it was switched into someone else’s name prior to the recording of the AJ. : Gary, I stated in my previous post that title companies use their own proprietary databases that are based on the legal description of properties, not their addresses. : And, precisely because of the problem with general liens that are just in a person’s name, the title companies also create their own special “General Index” to track those items. So any time a title company is doing a title report it will look up all the parties involved (buyers and sellers) in their General Index database and the property in their legal description database. : Hope this clears things up. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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