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Old 08-18-2005, 11:59 AM
chapka chapka is offline
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Join Date: Aug 2005
Posts: 84
Quote:
Originally Posted by palani
Of course what it says is "NAKED POWER NOT COUPLED WITH AN INTEREST" - if they don't have an interest then they don't have anything to sell --- ergo, FRAUD.

Incorrect. "Naked power" is a legal term with a specific, long-established meaning. A naked power is a power to sell or dispose of the land not coupled with an interest in the land. The classic example is an executor of an estate who is not also a legatee. The executor may legitimately be given the power to dispose of the land, but holds no interest in it himself or herself. This was perfectly legitimate under common law.

In other words, they don't have an interest of their own to sell, but they do have a legitimate power to sell another person's interest. Thus, in the situation discussed in the image below, the marshall is selling the debtor's interest to satisfy the tax debt. What the quoted passage says is not that this is fraud, but that you can't prove that you own the property just based on the receipt you got from the marshall; you also have to prove that the marshall followed whatever procedures are required to allow the government to sell the land.

Regardless, if it were fraud, it would be fraud whether the sale was inside or outside the building.
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