1. Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information:

• That the trust exists and the date the trust instrument was executed
• The identity of the settlor
• The identity and address of the currently acting trustee
• The powers of the trustee
• The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust
• The authority of co-trustees to sign or otherwise authenticate and whether all or less than all are required in order to exercise powers of the trustee
• The trust’s taxpayer identification number; and
• The manner of taking title to trust property
2. All the trustees must sign a certification of trust. A third party may require that the certification of trust be acknowledged or guaranteed.

3. A certification of trust must state that the trust not been revoked, modified, or amended in any manner that would cause the representations contained in the certification of trust to be incorrect.

4. A certification of trust need not contain the dispositive terms of a trust.

5. A recipient of a certification of trust may require the trustee furnish copies of those excerpts from the original trust instrument and later amendments which designate the trustee and confer upon the trustee the power to act in the pending transaction.

6. A person who acts in reliance upon a certification of trust without knowledge that the representations contained therein are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. Knowledge of the terms of the trust may not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying upon the certification.

7. A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct.

8. A person making a demand for the trust instrument in addition to a certification of trust or excerpts is liable for damages if the court determines that the person did not act in good faith in demanding the trust instrument.

9. This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust. Any questions regarding a transaction including a Trust Agreement or the use of a Certification of Trust can be directed to Security Title. Please feel free to call: Jack Forsythe Legal Counsel (314) 835-4105 “Secure Your Investment With Security Title”

• The purchaser of a villa acquires the ground directly underneath their portion of the building and their portion of the building subject to a shared wall with a neighbor (sometimes referred to as a “party wall”).
• The excess area of the lot is common ground that the subdivision association owns and maintains.
• The shared wall or party wall should have an agreement that is recorded dealing with maintenance/upkeep of said wall.  This agreement can be outlined in the subdivision indentures or as a separate agreement.
• Because the purchaser owns the ground directly underneath their portion of the building, they will need a survey in order to get survey coverage.
• Most surveyors will only perform stake/boundary surveys in connection with a villa- so make sure you order early in the process. 
• Villas are typically part of homeowners associations and may have a “First Right of Refusal” clause in their indentures.  In this instance, the title company will need to get that signed off prior to closing.
• A purchaser of a villa will have a monthly maintenance fee that would be prorated at the time of closing.

Villas are very popular in today’s market and it is important to know how they differ from the typical single family home, condo or townhome.  Please feel free to call with any additional questions you have regarding these transactions.

Jack Forsythe   
Legal Counsel
(314) 835-4105

“Secure Your Investment With Security Title”

• The purchaser of a townhome acquires a lot and that part of the townhome building located on that lot, subject to the interests of the adjoining lot owner in a shared party wall.
• The shared wall or party wall should have an agreement that is recorded dealing with maintenance/upkeep of said wall.  This agreement can be outlined in the subdivision indentures or as a separate agreement.
• Because there is ground owned with a townhome, they will need a survey in order to get survey coverage.
• Most surveyors will only perform stake/boundary surveys in connection with a townhome- so make sure you order early in the process. 
• Townhomes can also be part of homeowners associations and may have a “First Right of Refusal” clause in their indentures.  In this instance, the title company will need the association to sign a waiver prior to closing.
• A purchaser of a townhome will have yard maintenance, however, the subdivision may maintain it for them for a fee.  If a fee is assessed, it would be prorated at the time of closing.

Townhomes are very popular in today’s market and it is important to know how they differ from the typical single family home, condo or villa.  Please feel free to call with any additional questions you have regarding these transactions.

Jack Forsythe   
Legal Counsel
(314) 835-4105

“Secure Your Investment With Security Title”

• Mechanic’s Lien issues are the #1 title insurance claim in the state of Missouri- be sure you are receiving mechanic’s lien coverage on their owner’s policy of title insurance.
• If the builder is selling a spec home- the title company will consider it to be new construction. 
• The title company will need to know if the builder disbursed his funds on the project through the bank, through a disbursing company/title company or if they self-disbursed.
• If the builder self-disbursed, have the title company first check to see if the builder is on their underwriter’s approved list.
• If the builder is not on the approved list, they will need to get a Certificate of Disbursement from the bank or title company that disbursed the funds.
• If the builder self-disbursed AND they are not on any approved list, the title company will need to review the appropriate documentation from the project (i.e. cost breakdown, all invoices, and lien waivers from all contractors and suppliers).  Please note:  There may be a fee for this service.
• Be sure to let your title company know that the property is newly constructed early in the process so that all parties have enough time to get the appropriate documentation together.
• Many builders will supply their buyers with a survey.  If this is the case, be sure to find out what type of survey the buyer will receive and whether or not there is any charge associated with it. 

Jack Forsythe
Legal Counsel
(314) 835-4105
“Secure Your Investment With Security Title”

 a) Most favored by Purchasers.
 b) Grantor covenants the following:
  1)  Grantor has an indefeasible estate in fee simple;
  2)  Grantor has the right to convey;
  3)  The premises are free and clear of any encumbrance, with the
       exception of those currently of record or specified in the deed; and
  4)  Grantor will warrant and defend the title against the lawful claims of
       all persons, even those originating before Grantor’s ownership.
 c) “Grant, Bargain and Sell, Convey and Confirm”.

2. Special Warranty Deed:

a) The Grantor covenants and warrants that the Grantor will defend the Purchaser against the claims by and through the Grantor.  Thus the Grantor has no obligation to defend the Purchaser against any claim or demand originating in the time before the Grantor owned the property..
b) “Bargain and Sell, Convey and Confirm”.

3. Quit Claim Deed:

 a) The least desirable form of conveyance as far as Purchasers are concerned.
 b) No covenants or warranties whatsoever.
 c) Merely conveys whatever title, if any, the Grantor may have.
d) Often used as additional deed to correct technical defects in title.
e) “Remise, Release and Forever Quit Claim.”

4. Beneficiary Deed:

 a) Section 461.025 of the Missouri Non-Probate Transfers Law now, and
  permits almost “will-like” provision to be incorporated in a deed.
 b) Thus a grant may be made to a named beneficiary or beneficiaries
stating that the deed is not to take effect until the death of the Owner/Grantor, or the last to die of two or more Owners/Grantors.
 c) The grant may be to one Grantee or to multiple Grantees as joint tenants
  or tenants in common.
 d) The Beneficiary Deed must be recorded prior to the date of death of the
  Grantor, or the last to die of two Grantors.
 e) Upon recording, the deed is incorporated into the chain of title, however,
  it does not take effect until death.
f) The deed may be revoked by a revocation form, unless the original Beneficiary Deed provides that the transfer is to be irrevocable, or by another deed.

5. Trustee’s Deed (Under Foreclosure):

 a) Title acquired as a result of the foreclosure of a deed of trust.
 b) In order to pass a valid title at the foreclosure sale, the Trustee must
comply with a number of statutory requirements involving publication of notice of the foreclosure and personal notice to all owners of record, those that have recorded a request for notice of foreclosure and to the Internal Revenue Service if there is a federal tax lien recorded.

The above conveyance documents are used in many of today’s transactions.  It is important for your customer to understand their meaning.  Please feel free to contact us with any questions you have regarding these different types of deeds.

Please feel free to call:

Jack Forsythe
Legal Counsel
(314) 835-4105
“Secure Your Investment With Security Title”

• When someone is purchasing a condominium they are buying the space inside the unit, possibly a parking space and/or storage locker, and a percentage interest in the common elements of the complex.
• Because there is no ground owned with a condominium, there is no survey required. 
• Many condominium associations will have a “First Right of Refusal” clause in their indentures and the title company will need to get the association to sign a waiver prior to closing.
• Condominiums typically have a monthly condo fee that is a prorated adjustment on their closing statement.
• If the condominium is currently paying a Special Assessment in addition to the condo fee, the contract may required the seller to pay that fee in full regardless of whether the fee is amortized over time.
• Condominiums typically have a Master Insurance Policy.  The lender will normally want a copy of the Master Insurance Policy in addition to the homeowners insurance that the purchaser will obtain from their insurance agent. 

Condominiums are very popular in today’s market and it is important to know how they differ from the typical single family home.  Please feel free to call with any additional questions you have regarding these transactions.

Jack Forsythe
Legal Counsel
(314) 835-4105
“Secure Your Investment With Security Title”

Any questions can be directed to Wendy at Security Title or please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”

• If the Buyer is wanting to vest the property in a Trust, it must be approved by their lender prior to closing
• Your title company will require a copy of the Trust agreement prior to closing
• The title insurance company is looking to see that the Trust agreement is still active, who has the power to act as trustee and that the trust contains the power to sell, mortgage, etc.
• If the original trustee is deceased or incapacitated and the successor trustee will be acting as the signer, notify the title company and be prepared to present a copy of the death certificate for the original trustee.
• Do not assume that the title of the Trust Agreement will dictate who the trustee(s) are (i.e. The Sally Smith Living Trust may not provide for Sally Smith to act as the Trustee)
• A Trust Agreement must be in writing
• If you want to keep portions of the Trust Agreement as confidential information, the following parts of the agreement should satisfy the title companies requirements:
o The declaration or first page
o The section that lists the powers of the trustee
o The successor trustee provision, if the original trustee is deceased or incapacitated
o The signature page

Any questions regarding a transaction including a Trust Agreement can be directed to Security Title.  Please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965

Or email Wendy

“Secure Your Investment With Security Title”

• If the Buyer is wanting to use a POA it must be approved by their lender prior to closing
• Any POA form must be approved by your title company
• Title companies often will have a form that you can use if you ask them
• If you are not using the title company’s POA form then be sure to get it to them for review as soon as possible- do not wait until the day of closing
• The ORIGINAL Power of Attorney will have to remain at the closing to be recorded with the transaction
• An agent cannot typically be a POA for their client
• The document needs to be notarized by an independent third party
Any questions regarding the use of a Power of Attorney can be directed to Security Title.  Please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”

• First and foremost, work on this issue as soon as possible.  There are many ways to address the problem but the more time the title company has to work on it – the better!
• Locate the paperwork from the transaction where the loan was paid off. 
• If the loan was from a previous owner provide a copy of owner’s policy of title insurance.
• If the loan was from a refinance, locate a copy of the settlement statement, payoff letter and/or any additional paperwork that the lender may have sent them showing their account was paid in full.
• A Deed of Release is always the best way to take care of this problem; however, sometimes this is not possible due to the many bank consolidations throughout the years.
• Some lenders will send the Deed of Release to the borrower- so they may have it in their paperwork at home.
• Keep calm.  This does not mean you owe another loan on the property- it just means that a previously paid off loan was never released. 

This is a very common problem; please feel free to call Security Title if you have additional questions on this issue:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”