Property Presentation
Transcript: By: Tim Jones Landry & Azevedo PROPERTY HYPOTHETICAL THE PROPERTY BLACKACRE The Happy Couple The Happy Couple In 1958,Mr. and Mrs. Smith purchase 20 acres of land with one improvement called "blackacre" as tenants by the entirety. The Prodigal Son In 1982, the Smith's youngest son, Frank, comes to his father and says, "I want my inheritance now." Without conveying any property, Mr. Smith hires a surveyor to divide the property into thirds, keeping Lot 1 for he and his wife, and proclaiming to give Lot 2 to Frank and Lot 3 to his older son, Mike. The survey is recorded. The Prodigal Son Tragedy Strikes In 1992, Mike dies intestate (without a will) in an untimely accident, leaving behind two twin sons born out of wedlock, Zach and Adam. One year later, Mr. Smith dies leaving behind a will stating that he bequeaths all of his remaining interest in Blackacre to his loving wife for the rest of her life and then to his two dear sons, Frank and Mike. Tragedy Strikes Terrible Twins Dave and David party at the house on Lot 3 all night, every night, allowing the property to fall into disrepair. Tired of the loud noise, Frank erects a fence around the back of Lot 2 in 1999. Terrible Twins Dadgum Guvmn't Over the next 5 years, the County, by eminent domain, acquires an easement at the back of Lot 3 for a road that is never completed and the Federal Government declares the creek bed to be in a FEMA flood zone. Dadgum Guvmn't Goodbye Mrs. Smith In 2007, Mrs. Smith dies, leaving a will that bequeaths "Lot 1 of Blackacre," using a correct metes and bounds description, "to my only son, Frank, for his loving care over the years." There is no savings clause in the will. Three months later, in a cash sale, Dave and David convey "Lot 3 of Blackacre," using a correct metes and bounds description, to PJ, a property renovator, via a General Warranty Deed. Goodbye Mrs. Smith $$$ $$$ In 2010, James, a Michigan resident, sees a renovated Lot 3 for sale listed on-line. James calls PJ and says it will be the perfect retirement property and is sure he wants to buy it. PJ, who has never lived in the house, and is a licenesed real estate agent, assures James over the phone that there are no issues with the property and he commits to purchasing it. James calls Reasonable Ron's Title Agency to draft up the necessary paper work. Knowing both the Smith family and PJ for many years, Reasonable Ron conducts a quick title search and then sends James and his lender, Corey, Title Commitments to be underwritten by Keese Title, reflecting only the FEMA taking and the County easement. Making the Sale Unhappy Neighbors The sale goes through. PJ conveys Lot 3 to James via General Warranty Deed. James and Kim both get 2006 ALTA Title Policies. Everything is fine for many years until 2018 when Frank and James get into an argument and Frank erects a gate over the portion of the driveway that runs over Lot 2. Unhappy Neighbors THE ISSUES First, who owns what? The Issues By Color of Title: Dave - 25% of Lot 2 PJ - Nothing David - 25% of Lot 2 Frank - 100% of Lot 1 - 50% of Lot 2 - 50% of Lot 3 James - 50% of Lot 3 First, who owns what? Second, what are the other issues on Lot 3? The Issues First, who owns what? Second, what are the other issues on Lot 3? Third, how do we fix it? The Issues THE LAWSUIT THE LAWSUIT WHO ARE WE SUING? Frank Quiet Title Tort Liability Temporary Injunction Perscriptive Easement / Easement by Necessity Frank PJ Breach of Covenants of Warranty Failure to Disclose PJ DAVE & DAVID Breach of Covenants of Warranty Perscriptive Easement / Easement by Necessity Dave and David REASONABLE RON'S Breach of fiduciary duty. Reasonable Ron's KEESE TITLE Breach of Contract. Bad Faith (Consumer Protection). Performance. Keese Title Company Kim Probably no theories of liability, but will be named as a Defendant as an interested party. Kim Conclusion Conclusion Thank you! Tim Jones Landry & Azevedo (865) 851-7050 tim@lalawknoxville.com
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