Business Hints for Men and Women by Alfred Rochefort Calhoun (important of reading books .TXT) 📕
- Author: Alfred Rochefort Calhoun
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Business common-sense is taking the place of old-fashioned conservatism and scientific methods are no longer sneered at as “book-farming.”
All property implies an owner. Property is of two kinds, real and personal. The former is permanent and fixed, the latter can be moved.
Every occupant of realty holds it through a deed, which carries with it sole ownership, or through a lease which carries with it the right to occupation and use in accordance with the conditions as to time and the amount to be paid, set forth in the written instrument.
A deed carries with it sole ownership, a lease covers the right of use for a fixed period.
AS TO DEEDS
The purchaser of real estate, say a farm, should receive, from the person selling the property, a written instrument, or conveyance known as a deed.
The deed must show clearly that the title to or interest in the property has been transferred from the seller to the buyer.
Before the deed is signed and delivered, the buyer should know that he is getting a clear title to the property described in the conveyance.
In order to insure the accuracy of the title and thus avoid subsequent complications and perhaps lawsuits, the paper should be submitted to some good lawyer, or other person acquainted with real estate law and the methods by which titles are traced from the first owner to the present possessor.
TITLE ABSTRACTS
In all the great business centers of the United States there are Title Guarantee Companies, who for a consideration—to be paid by the seller—furnish an abstract of title, and insure its validity.
In smaller places the local lawyers know how to make up an abstract and one should be employed. Never trust the search of the inexperienced.
An abstract of title is a memorandum taken from the records of the office where deeds are recorded, and showing the history of the title from the Government up to the present time.
The seller should furnish the buyer with a certificate from the proper county officer, showing whether or not all taxes have been paid up to the last assessment.
In addition to this, before the money is paid and the deed accepted, the purchaser should be satisfied that there are no mortgages, liens, attachments or other claims against the property.
If such claims exist and are known to the buyer, he may assume them as a condition of the sale.
PARTIES TO A DEED
The person selling the land and making the deed is known in law as the Grantor. The person buying the property is known as the Grantee.
A deed is a form of contract, and in order to have its terms and statements binding on the maker, he must be twenty-one years of age, or over, and he must be of sound mind.
The grantee need not be twenty-one, nor of sound mind in order to make the terms of the deed binding on the grantor.
In some states, if the grantor be a married man, his wife must sign the deed with him. This should be seen to, for without the wife’s signature the grantee will not have a clear title, for the woman could still claim an interest in the property equal to her dower right.
Also, if the grantor is a woman, her husband, for the reasons given, should join with her in the execution of the deed.
The preparation of a deed should not be left to the unskilled.
DIFFERENT DEEDS
There are three kinds of deeds, viz.: General warranty deeds, special warranty deeds, and quit-claim deeds.
The general warranty deed, if it can be had, is the one every purchaser should get.
In the general warranty deed the grantor agrees for himself, “his heirs, executors, administrators, and assigns,” that at the time of making the deed he is lawfully in possession, “seized” is the legal term, of the estate described in the deed, that it is free from all incumbrance, and that he will warrant and defend the grantee and his heirs and assigns against all claims whatsoever.
In the quit-claim deed the grantor conveys to the purchaser his interest in or right to the property under consideration.
The quit-claim grantor does not guarantee the title to the property, nor warrant the grantee against any other claims. He simply, by the deed, quits his claim to the property.
The special warranty deed covenants and warrants only against the acts of the grantor and those claiming title under him.
MAKING A DEED
After a deed is properly drawn, it is ready to be signed, sealed, and delivered to the grantee.
If the wife of the grantor is to sign, her name should follow that of her husband.
If one or both cannot write, the signature can be made in this way:
His George X Jones. Mark.
Witness…………..
In some states one or more witnesses are required to the signature of the grantor; in others, witnesses are not necessary, except where a “mark” is made.
An important part of a deed is the Acknowledgment. This is the act of acknowledging before a notary public, justice or other official properly qualified to administer an oath, that the signatures are genuine and made voluntarily.
The acknowledgment having been taken, the official stamps the paper with his seal and signs it.
In some states the law requires that a wax or paper seal be attached to the paper, while in others a circular scroll, made with the pen, with the letters “L.S.” in the center answer the purpose.
When the foregoing essentials are complied with the deed must be delivered to the grantee. The delivery is essential, for without it the deed is of no value, even though every other requisite be complied with.
A deed may be made for land on which full payment has already been acknowledged, but if the grantor dies before the deed is delivered, then the deed has no legal value.
A deed obtained by fraud, deceit or compulsion is void.
RECORDING DEEDS
As soon as possible after the grantee has received the deed, he should have it recorded.
In every county in the different states there is an officer, known as register or recorder, whose duty it is to enter in regular folios, or books, a copy of every deed or mortgage presented to him. The document then becomes a part of the county records.
The grantee must pay the recording fees.
Anyone, on paying the fee for copying and certifying, can obtain a copy of any document that has been recorded in a register’s office.
If an original deed is lost, the certified copy of the register has all the legality of the original.
All deeds and other papers of value should be carefully kept, so that they may be available, if needed.
A small safe deposit box with a company that keeps such spaces for rent, is often a wise investment.
Keep all related papers in one package or envelope.
If there is one lawyer who attends to all your legal business, he will be a good custodian of all papers of record, for he usually has a fireproof safe.
There is one condition under which the grantor does not turn over or deliver the deed to the grantee after it is made. This is known as a Deed in Escrow.
A deed “delivered in escrow” is when the document is placed with a third party to be by him delivered to the grantee when a certain time has elapsed or certain conditions have been fulfilled.
When the conditions have been complied with, the deed is given by its custodian to the grantee, which is as legal as if it were given by the grantor in person.
TRUST DEEDS
A trust deed is the form used to convey property to some person who is entitled to its proceeds or profits.
This form of deed is often used to secure the payment of a debt. In some states they take the place of mortgages.
Where the trust deed is meant to take the place of a mortgage to secure a debt payment, the property is deeded to a third party known as a “trustee.”
The trustee in this case is the agent for debtor and creditor, and he must act impartially.
The trust deed specifies the character of the debt to be secured. In case of failure to pay the debt as agreed on, the trustee may, if so warranted, sell the property, and pay the obligation from the proceeds.
The grantor in a trust deed, if not stipulated to the contrary, is entitled to all the rents and profits of the property; for it remains virtually his, until he has failed to fill his contract.
When the indebtedness secured by the trust deed has been paid, the trustee must at once execute a paper known to law as a Release Deed. When recorded this instrument discharges the lien.
AS TO MORTGAGES
Mortgages are of two kinds, real and chattel. The first is a lien on real estate, the second on personal property.
A mortgage may be defined as a conveyance of property, personal or real, as security for the payment of a debt, or it may be given as a guarantee for the performance of some particular duty.
MORTGAGE FORMS
When a mortgage is given as security for the payment of a debt, the rule is to give a note for the payment of the amount involved. The mortgage becomes in this case the security for the note’s payment.
In the body of the note it must be stated that it is secured by mortgage.
The date of the note and mortgage should be the same.
The man who mortgages his property is the mortgagor.
The man to whom the mortgage is given is the mortgagee.
The form of the mortgage is the same as that of a deed, except that it contains a clause called the Defeasance, which states that when the obligation has been met the document shall be void.
MORTGAGES MUST BE RECORDED
The forms for “signing, sealing and delivering” a mortgage, are the same as with a deed.
A mortgage must be recorded the same as a deed, the mortgagee paying the fees.
Chattel mortgages are filed and recorded in the same way, except that it is not usual to make copies of the instrument. They are described in books prepared for the purpose.
A wife need not join her husband in making the note secured by a mortgage, but if she agrees to the transaction it is necessary for her to sign the mortgage; however, some states do not require this.
PAYMENTS
Often a life insurance policy is used as security for the payment of a mortgage.
The mortgagee, if there be buildings on the property, should see that the buildings are insured and that the policy or policies are made out in his name.
If the insurance policy is in the mortgagor’s name he may collect and keep the insurance money.
The mortgagor must meet, as stipulated, every payment of the principal and interest.
Failure to meet one payment can result in a legal foreclosure.
When a payment is made, the date and the amount must be entered on the back of the note. This should be done in the presence of the mortgagor.
If possible always pay the obligation by check.
If a payment is accepted on a mortgage and the amount is not sufficient to meet the sum required, the interest is first settled in full,
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