Where goes the Chain of Title? That was our last question. Well, we made it to "1" of many issues about what we thought we knew. Our communities still rely on the "chain of title" to tell us where we are and who needs to receive money in order to deliver to the "Seller-Debtor" and "Buyer Debtor" what they bargain for. This is NOT the reality.
What happens if the "chain of title" is riddled with mis-information and mis-direction (concealment) designed to make you believe it's business as usual. And your paid professionals promote the belief based solely on the fact that, "It must so, because we just closed and I just got paid".
SideNote: "You will always find more people to help you with misdirection, than you will find to lead you to resolve", Doc Finnucci (2019).
So, let's start with the "day players" (the paid professionals) who help you along this mistaken path and conditioned belief.
What are their foundations? GETTING PAID?
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TITLE INSURANCE - “TITLE INSURANCE” is only a "contract" that states the risk THE INSURANCE COMPANY IS willing to undertake and NOT a representation as to the STATUS OF TITLE. (Source: CLE 2010-Advanced Title Issues)
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ESCROW - At its essence, escrow is the process whereby parties to the transfer or financing of real estate deposit documents, funds, or other things of value with a neutral and disinterested third party (the escrow agent), which are held in trust until a specific event or condition takes place according to specific, mutual written instructions from the parties. Escrow is essentially a clearinghouse for the receipt, exchange, and distribution of the items needed to transfer or finance real estate. When the event occurs or the condition is satisfied, a distribution or transfer takes place. When all of the elements necessary to consummate the real estate transaction have occurred, the escrow is “closed”. (Source: CBRE - RE Commissioner)
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SideNote: Take notice of the use of the word "consummate" and the affect to Escrow closings.
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REALTOR - In order to become a Realtor—a licensed agent with the ability to use that widely respected title—an agent needs to be a member of the National Association of Realtors®. As a member, a person subscribes to the standards of the association and its code of ethics.
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FINANCIAL INSTITUTION - Banking is concerned with their “record priority” for the return of the funds put forth should the “borrower” default on the intended obligation. They rely therefore on the report of Title and the corresponding TITLE INSURANCE. (Source: Bank Rate Website)
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LAND TITLE REGISTRY - What is important to understand here, and not always generally known, is that the county recorder is not responsible for verifying the validity, authenticity or legitimacy of the document that is recorded. In other words, the recorder is not responsible for detecting a fraudulent document, and the recorder does not look beyond the document itself. If the document meets the essential recording requirements, and the proper fees are submitted, the county recorder is obligated to and will record the document. (Source: DRE Chief Counsel)
Real Property Lawyer? Who, of these paid professionals, is making sure that the "Seller-Debtor" and "Buyer-Debtor" are getting what they are bargaining for? Do you, the reader, remember what is being bargained for here?
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THE JUSTICE SYSTEM: “The debtor owes money NOT to the world at large but to a particular person or institution, and ONLY the person or institution entitled to payment may enforce the debt by foreclosing on the security.” Yvanova, the Supreme Court of California (2016)
If the "day players" all rely on (ignore) the "flawed manipulated facially valid" land title records, then who is checking the status of title?
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How does the "Seller-Debtor" know who can lawfully "discharge the debt obligation"?
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How does the "Buyer-Debtor" receive "Title Insurance" and maintain the "bona fide purchaser for value" status?
Remember, this is part 4 and we have 6 more parts. Based on how this process starts and operates throughout the "life of loan", it appears "none" of the most essential players (SD and BD) are getting what they bargain for. Is this by design? Just how different are the "day player participants" from what we grew up learning?
Let's keep going, we have our real property to save and time is running out on the "moratoriums".
[Season 1, Episode 4]