While corporations and limited liability companies are the most common business entities, Virginia also allows for the formation of another type of unincorporated association known as a business trust. These trusts can hold title to real estate and other property just like any other business entity. A business trust is a legal arrangement where the … Continue reading Business Trusts in Virginia: An Overview for Title Insurers
Can You See Me Now? The Corporate Transparency Act
Title professionals are no strangers to the difficulties in getting to the bottom of ownership issues for those operating a business through opaque entities. Peeling back the layers is often required to get to the ultimate owner. The anonymity provided is important to some companies as a means of legally doing business. However, these same … Continue reading Can You See Me Now? The Corporate Transparency Act
Ramblings of a Title Man
Flash-back to 1994 A title agent asked me: “How should we think of the market in 2022?” My answer was: “Like it’s 1994.” What happened in 1994 can be extremely telling to how we plan for the rest of this year. In 1994, economic conditions were becoming difficult. Inflation had grown from nearly nothing in … Continue reading Ramblings of a Title Man
The Claims Corner: Revenge Equity Theft, Safeguards to Avoid a Potentially Costly Policy Loss
This article concerns a business partner’s theft of the equity in the limited liability company’s real property and business assets, following a dispute over the partners’ profit-sharing provision, by falsifying documents to represent he had authority to mortgage the LLC’s realty. While claims such as these are not uncommon and can result in expense and … Continue reading The Claims Corner: Revenge Equity Theft, Safeguards to Avoid a Potentially Costly Policy Loss
Judgments and Trusts
Trusts governed by the Virginia Uniform Trust Code (Va. Code § 64.2-700 et seq) are the most common form of trust arrangement found in the land records. Such a trust may be created when real property is transferred to another person as trustee, either by deed during the settlor’s lifetime or pursuant to a will … Continue reading Judgments and Trusts
Tax Sales in Virginia – Part Two
Read Tax Sales in Virginia - Part One here. Litigation After the pre-litigation publication and mailed notice periods have expired a complaint can be filed with the circuit court asking that the property be sold for the delinquent taxes. The complaint generally tells the story of the real estate. It should indicate whose name the … Continue reading Tax Sales in Virginia – Part Two
Virginia’s New Foreign Entities and Ownership Act
Context and Background of New Law In response to growing global tensions between the United States and certain other adversarial nations, and concerns about such nations owning and acquiring lands within the Commonwealth, Governor Glen Younkin in the State of the Commonwealth address in January 2023 asked the General Assembly to send him a bill … Continue reading Virginia’s New Foreign Entities and Ownership Act
The Claims Corner: Trends in Vacant Land Fraud Claims
Title insurance serves as a safeguard promising protection against potential property ownership disputes. However, even with this coverage in place, homeowners may still be compelled to file a title insurance claim. These claims, often triggered by issues relating to unreleased liens or deeds of trust, boundary disputes, or fraud, can be complex and daunting. In … Continue reading The Claims Corner: Trends in Vacant Land Fraud Claims
ARTU 2023 Fall Q & A
Anal Retentive Title Underwriter Question & Answer In 2012, Bank of Westeros made a $150,000.00 loan to Robert Baratheon, secured the note with a deed of trust on Lot 5 of Wessex, and obtained a lender’s title insurance policy. In 2015, Robert defaulted on the loan and subsequently died intestate. A pre-foreclosure search revealed a … Continue reading ARTU 2023 Fall Q & A
Virginia Land Title Association Advisory Bulletin
Regarding Attorney Opinion Letters in Lieu of Title Insurance In 2022, as part of new Equitable Housing Finance Plans, the Federal National Mortgage Association (FNMA or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (FHLMC or “Freddie Mac”) announced that they would accept Attorney Opinion Letters (AOLs) in lieu of a loan policy of … Continue reading Virginia Land Title Association Advisory Bulletin
The Business Of Marriage: The Non-Divorce Attorney’s Impact on A Divorce
Once upon a time, there was a beautiful woman who did very well for herself. She started her own software company and reaped the financial benefits when the company was bought out. She retired young and put over a million dollars down on a new home and carried a relatively small mortgage. Soon after these … Continue reading The Business Of Marriage: The Non-Divorce Attorney’s Impact on A Divorce
The Claims Corner: Trespass and Nuisance
While the Homeowner’s Policy provides expansive coverage, it still does not cover every problem that may arise with a property. In particular, it does not provide coverage for use of the property that is found to constitute either a trespass on or a nuisance to a neighboring property. The following provides an example of this: … Continue reading The Claims Corner: Trespass and Nuisance
Tax Sales in Virginia – Part One of Two
Virginia local governments maintain revenues primarily through various types of tax assessments. Typically, the largest source of funds for a local government is generated through real estate tax assessments and levies. Funds are also raised through personal property, business license, transient occupancy taxes and other forms of revenue. This article will concentrate on real estate … Continue reading Tax Sales in Virginia – Part One of Two
Impact Of A Bankruptcy Filing On Real Property Of A Single Member LLC
A common practice when owning property for investment is to establish a limited liability company – an LLC - to hold title. This helps to compartmentalize ownership and/ or investor groups. Limited liability companies are legal entities, created by and under state law, combining attributes of corporations and partnerships. Property of an LLC has the further advantage … Continue reading Impact Of A Bankruptcy Filing On Real Property Of A Single Member LLC
Caselaw Affecting Ownership of Real Estate in Virginia – Part Two
Case # 1: Austin v. City of Alexandria, 374 SE 2d 289, 265 VA 89 (2003). Principle: It is crucial to make sure that a trustee signs in their capacity as trustee and not as an individual. If a trustee signs in his capacity as an individual and not as trustee when the property is … Continue reading Caselaw Affecting Ownership of Real Estate in Virginia – Part Two
Underwriter, Oh the Many Meanings of the Word!
When you say “your underwriter,” do you mean the company for which you are an agent or do you mean the person that prepares your title insurance commitments and policies? (Let’s not even talk about the lender’s underwriter!) It feels as though this term is thrown around a lot these days and results in confusion. … Continue reading Underwriter, Oh the Many Meanings of the Word!
ARTU Spring 2023
Question: In 2010, ABC Development acquired 50 acres and encumbered the acreage with a $600,000.00 deed of trust to Middlesex Bank. In 2012, ABC conveyed 5 acres to Russell Brinker, who obtained an owner’s title insurance policy. Brinker’s settlement agent sent the necessary funds to Middlesex Bank to obtain a certificate of partial satisfaction of … Continue reading ARTU Spring 2023