|
It is true — when a Land Patent is first issued to its named party there can be no mortgage or other limiting contract that would limit the absolute fee simple nature of the land or its appurtenances. However, once the Land is secured by Land Patent subsequent mortgages related to the real estate located on that Land are not relevant to the Land Patent or its assignment. In fact, you may notice, the process of getting a real estate loan requires that you must already own the Land and its relevant appurtenances or the bank will not loan the funds. That’s why, today, when people make real estate purchases using bank loans they must go through a title company’s escrow.
Follow the process:
First — The seller wants to sell and the buyer wants to buy.
Second — This presupposes that the seller has the right to sell and the buyer has the funds to buy. For the seller to have the right to sell he must have “Title”.
In most cases today the seller does not know if he has Title or not because all he ever received was his Deed and a Title Insurance Policy (which means a title insurance company secures that the last purchase of that particular real estate had no problems with the sale or conveyance to the party the buyer is securing the property from and if the title is not good the insurance company will pay the bank back the funds they loaned). Title to the Land starts with the relevant Land Patent and moves through a chain of assignment from transfer document to transfer document to the current owner—each document from the Land Patent to the present are part of the chain of title with the Land Patent being the actual Title and your Deed being you right of assignment to that Title. A Certified Abstract may stand as evidence of your Title and may be acceptable by a Court, but a proper complete Title will include either the original documents or certified copies of the same from Land Patent to present.
You may notice at this point that if all we are dealing with here is the sale of Real Estate the Land may not be included. The landowner could effectively sell the Real Estate and reserve the Land and even begin charging “ground rent”, which you would have to pay or you could be evicted from the Land.
For a buyer to meet the conditions of assignment he must have the funds necessary to meet the seller’s conditions. If the buyer does not have sufficient funds he may use bank funds but the bank will require him to secure the loan with the Real Estate. In order to do that the bank will authorize such paperwork as to guarantee that if the buyer can secure the transaction the bank will provide the funds. With that escrow opens:
• Third — The Title Company’s Escrow opens:
To open escrow:
The buyer and seller provide the Title company with their contractual agreement;
The seller provides his title to the land, which includes either his abstract (uncommon today) or his Warranty Deed and his Title Insurance Policy;
The buyer provides his personal information and the banks guarantee of funding.
the seller’s agreement requires that he will grant the Land to the buyer if the buyer can pay his price for the appurtenances to the land (Real Estate), which is proven with the banks performance agreement so the seller grants title to the Land to the buyer;
the buyer now has the right to the Land and the Real Estate; and,
the Title Company sells the seller a new Title Insurance Policy for the buyer and the bank
the Title Company provides the bank with proof of the Title Insurance Policy and assurance that the buyer owns the respective Land;
the bank provides the loaned funds to the seller for the buyer;
according to contract the Title Company generates a respective Trust Deed related to the Real Estate to secure the mortgage to the bank with the appurtenant property (not the Land)
• Fourth — escrow closes on completion of all of its contractually required elements:
the seller is given certified bank funds;
a Trustee for the bank is given its Trust Deed to secure the mortgage;
the bank is given its copy of the new Title Insurance Policy and its copy of the Trust Deed;
the buyer is given the Land with control of the property (Real Estate, i.e. property, i.e. appurtenances), the Title Insurance Policy and his copy of the Mortgage and the respective Trust Deed;
the Title Company records all of the appropriate documents with the County Clerk and Recorder; and,
the County Clerk and Recorder returns the document to the parties as per the instructions from the Title Company.
So the real question is, ‘does the Land Patent have anything to do with a mortgage?’ And, the answer is—‘No.’ That also means that whether or not you have or have ever had a mortgage related to your property ownership, such a mortgage has no relation to your having received that grant or assignment secured by the Land Patent.
The other property ownership limitation people generally concern themselves with is property taxes. In fact property taxes are purely contractual. They are not constitutionally controlled, that is to say, they do not have to be uniform, apportioned or excise in their nature, because they are contractual. They are related to the Voter’s Registration contract. To understand property taxes, it is helpful to understand that the STATE OF ‘X’ (where “X” is related to a common State name) is a private corporation. Signing up as a registered voter is a voluntary choice. Once a person is a registered voter they become a participant in collaterally securing any property tax issue passed by the voters to any property they have in that state. This is why those in positions of governance always call this country a Democracy—because if 50%+ of the registered voters vote for a bond issue, all of the registered voters are subject to it.
Some people participate in property taxes already attached to a property by a previous owner when they acquire the property from the previous owner. They do this by accepting the obligation to pay the property taxes for the remainder of the year.
That is why most of the STATE OF ‘X’ entities charge their property taxes in arrears because so doing means the years taxes are not due and payable until after the year is over—if you close your purchase at some time that is not at the year’s end the taxes that were already contracted to by the previous owner would not have been paid so the seller agrees with you that you will pay them as a condition of the sale. When you pay those taxes you become the contracted party to pay them as time goes on.
The final way people contract to pay property taxes is the Corp. State sends out an assessment even though they have no existing contract for payment and the property owner pays the assessment; which payment stands as a signature act on the contract to pay the property taxes from that day forward. In any of these conditions the obligation to pay according to the voter’s registration contract is secured, regardless of whether the payer is a registered voter or not.
Zoning and Building Codes are a direct result of property taxes. When you put your property up as collateral to secure your payment of your contractually obligated property taxes, the Corp. State receives, from you, the authority to secure the value of your property with appropriate zoning regulations and building codes. This related element of control should be self explanatory. To eliminate the Corp. State’s authority to control your property through such statutory controls one would have to first eliminate any related obligation to property taxes.
The key to eliminating property taxes is, eliminate the contract.
To dispel the myth that property taxes cannot be eliminated, first remember, “people make contracts, property cannot.” That means: the obligation to pay property taxes is bound to the person so obligated and not to the property. People eliminate their obligation to the property taxing contract everyday by selling the property.
The best way to eliminate the contract is to never enter into it to begin with. When we acquire Land, and its respective property, we always pay with real money (gold or silver coin) for the purchase of the appurtenances to the Land; and we make sure we get the full assignment to the Land with a true Title to the Land (a Certified Abstract not simply the alleged assurance of Title Insurance); we also, make sure the Land and its appurtenances are free and clear of all encumbrances before closing.
If you entered into a property tax agreement either as a registered voter or by accepting it from a previous contractee (or assessment) then one would need to eliminate the contract after the fact. The best way to do that is to prove the other party violated their fiduciary accountability to the contract thus breaching the contract. The easiest way is to eliminate the contract is, simply pay it off. At Team Law we have helped people learn how to properly perform these and other proprietary methods of handling such matters (some of which are very simple).
|