Jim Valentine on Real Estate
Real estate matters can be costly to put into play, but it is important that you make sure you are doing things correctly when you do them.
We’ve seen a number of instances where people are trying to save a few dollars by creating their own deeds. These are often quitclaim deeds that they acquire online, or from a stationary store if it was done before the proliferation of internet activity.
While they may save a few dollars by not having the deed prepared by an attorney, or an escrow officer who uses documents approved by an attorney, it can ultimately cost a lot more if the document was prepared incorrectly.
We’ve seen numerous handwritten deeds that weren’t done correctly. The errors usually involve an incorrect property description. Be advised, it isn’t always the “homegrown” deeds that make such mistakes, we’ve seen some deeds lately prepared by an attorney for an estate that omitted easements on the boundaries of the properties.
This can lead to an owner thinking that they have a secure boundary when, in fact, the public can legally circumnavigate their property.
This would not happen if they comply with NRS 111.312 which states that “If a document including the same legal description described in subsection 5 previously has been recorded, the document must include all information necessary to identify and locate the previous recording, but the name and mailing address of the person who prepared the legal description is not required for the document to be recorded. The county recorder is not required to verify the accuracy of the information concerning the previous recording.” For this reason, you will see a statement as so required after the legal description on recent deeds. If correctly reproduced easement omissions and other errors would not occur.
Sometimes “homegrown” deeds are used to add someone to the title of a property. In such situations it is usually a case of affirming affection one way or another, i.e. – live in partner, family member, etc.
This can result in serious title problems when relationships break down, someone passes resulting in an heir becoming a new “partner” for the remaining title holder, or other circumstances that can have a dramatic impact on the ownership rights and options of the parties.
It isn’t always ownership transfer deeds that get recorded. We’ve seen recreational easements granted for work performed or other such consideration. Such an easement allows the recipient to enter your land and do “fun” things like fish, camp out, etc.
This runs with your land so be careful about what you “give” away when you record something against the title of your property. Some folks choose to add restrictions that can impact value and uses, i.e. – no further splitting of the land, no motorized vehicles, etc.
It may maintain the current aesthetics of the property, but what happens in 30 years when heirs or successors in interest may have a different desired use. That is certainly what the restriction is designed to prevent, but times change and so do neighborhoods, social values and lifestyles.
Rather than recording something permanent, maybe grant a license for use. There is nothing to prevent you from recording your self-created document to provide constructive notice to the world about some aspect of your real estate but be sure you do it correctly when you do.
We suggest that you contact your attorney or an escrow officer to make sure the document is proper format for the function it is intended to effect. They can also advise you about potential unintended consequences that could have an adverse impact on you.
We believe you will find the cost of such service to be quite affordable in most instances and worth the investment to protect you and those you are working with.
Besides the physical characteristics and benefits of your property, one of the most essential components of your real estate is its title. Cherish and protect it at all times. Don’t clutter title with unnecessary or faulty recordings.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Gold Carson Valley, 775-781-3704. dpwtigers@hotmail.com.