A Remedy for the Ill. Update… still researching!

I wanted to tell my readers that I am still actively researching things such as tax law, trust law, and property interest.  Some recent moments of clarity:

In the NC code under “Land registration”:

“Chapter 43.

Land Registration.

Article 1.

Nature of Proceeding.

§ 43-1.  Jurisdiction in superior court.

For the purpose of enabling all persons owning real estate within this State to have the title thereto settled and registered, as prescribed by the provisions of this Chapter, the superior court of the county in which the land lies in the State shall have exclusive original jurisdiction of all petitions and proceedings had thereupon,  under the rules of practice and procedure prescribed for special proceedings except as herein otherwise provided. (1913, c. 90, s. 1; C.S., s. 2377.)

 § 43-2.  Proceedings in rem; vests title.

The proceedings under any petition for the registration of land, and all proceedings in the court in relation to registered land, shall be proceedings in rem against the land, and the decrees of the court shall operate directly on the land, and vest and establish title thereto in accordance with the provisions of this Chapter. (1913, c. 90, s. 2; C.S., s. 2378.)”

It is important to read this with an open mind- I believe that when the word “settled” is used, it means something other than “finalized” or established”.  Look at this:

“Settlor

One who establishes a trust—a right of property, real or personal—held and administered by a trustee for the benefit of another.”

Also, Article 9 under that same chapter says:

“Article 9.

Removal of Land from Operation of Torrens Law.

§ 43-56.  Proceedings.

Any land brought under the provisions and operation of this Chapter before April 16, 1931, may be removed and excluded therefrom by a motion in writing filed in the original cause wherein said land was brought under the provisions and operation of said Chapter,…”

Notice the phrase “provisions of this chapter”…

“provision (Act of supplying), noun accommodation, arrangement, catering, donation, endowment, furnishing, preparation, procurement, providence, purveyance, serving

This can be read as an offer for government services, aka privilege. It is a contract with the county, as evidenced here:

“§ 43-20.  Decree and registration run with the land.

The obtaining of a decree of registration and the entry of a certificate of title shall be construed as an agreement running with the land, and the same shall ever remain registered land, subject to the provisions of this Chapter and all amendments thereof. (1913, c. 90, s. 26; C.S., s. 2395.)”

The land is presumed under contract eternally after registration, until that presumption is rebutted. That’s what the “Removal of Land from Operation of Torrens Law” section referenced above is for.  It prescribes the method of breaking that agreement and presumption.

Once removed from Torrens registration, the land can very easily be placed into/under your own trust:

“Chapter 36C: North Carolina Uniform Trust Code.

Article 4.

Creation, Validity, Modification, and Termination of Trust.

§ 36C-4-401.  Methods of creating trust.

A trust may be created by any of the following methods:

(1)        Transfer of property by a settlor to a person as trustee during the settlor’s lifetime or by will or other disposition taking effect upon the settlor’s death including either of the following:

a.         The devise to the trustee of the trust as provided in G.S. 31-47.

b.         The designation of the trust as beneficiary of life insurance or other death benefits as provided in G.S. 36C-4-401.1.

(2)        Declaration by the owner of property that the owner holds identifiable property as trustee unless the transfer of title of that property is otherwise required by law.

(3)        Exercise of a power of appointment in favor of a trustee.

(4)        A court by judgment, order, or decree, including the establishment of a trust pursuant to section 1396p(d)(4) of Title 42 of the United States Code.

 I believe we’ve already done “(1)” when signing a deed of trust, and “(2)” is how we initially take it back, and claim private ownership.  Look up the legal definition of “Declaration”– it is not just a statement, but a formal written statement in the nature of an affidavit. This declaration gets recorded, not registered.

It just gets more and more interesting.  So, at this stage, you are trustee AND beneficiary of the land. Legally speaking, you are the holder of the legal title, while the beneficiaries are privately known.

But wait… the deed of trust conveyed full legal title to land that you didn’t know you owned (how else could you convey title?), and the lender is listed as beneficiary to that trust.

How can two people, the named trustee on the deed of trust, and yourself, subsequent declarant of trusteeship of the land, both hold legal title?  The deed of trust hasn’t even been cancelled yet…

Or maybe it has…

“Chapter 45.

Mortgages and Deeds of Trust.

Article 4.

Satisfaction.

§ 45-36.4. Definitions.

As used in this Article, the following terms mean:

(15) Satisfy. – With respect to a security instrument, to terminate the effectiveness of the security instrument.”

Is an instrument that gave a trustee legal title still valid, when the same grantor of legal title records a declaration claiming back that legal title? What do you think?

I say that the D of T is no longer effective, and thus satisfied/cancelled/good riddanced.

Fascinating stuff. No wonder the law always refers to “payment OR performance of the obligation…”:

“(1a) Borrower. – A person primarily liable for payment or performance of the obligation secured by the real property described in a security instrument.”

(17) Secured obligation. – An obligation the payment or performance of which is secured by a security interest.

There are no less than fifteen instances of the phrase “payment or performance” within Chapter 45 Mortgages and Deeds of Trust.  Why can’t they use the word “payment” alone?  Is putting the title back in your own possession and care the “performance” needed to satisfy and cancel the D of T? I don’t know, but I intend to find out.

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Land Registration pt. 1: “Certificate of Title”

This has been a pet subject of mine recently, as I believe that the justification of taxing property comes from the fact that it is registered– that the owner-to-be is receiving a benefit.

Black’s Law Dictionary, 5th Edition says:

Certificate of title. See Insurance (Title insurance).”

Title insurance. Insurance against loss or damage resulting from defects or failure of title to a particular parcel of realty, or from the enforcement of liens existing against it at the time of the insurance.    This form of insurance is taken out by a purchaser of the property or one loaning money on mortgage, and is furnished by companies specially organized for the purpose, and which keep complete sets of abstracts or duplicates of the records, employ expert title-ex­ aminers, and prepare conveyances and transfers of all sorts.    A “certificate of title” furnished by such a company is merely the formally expressed profession­al opinion of the company’s examiner that the title is complete and perfect (or otherwise, as stated), and the company is liable only for a want of care, skill, or diligence on the part of its examiner; whereas an “insurance of title” warrants the validity of the title in any and all events. It is not always easy to distinguish between such insurance and a “guaranty of title” given by such a company, except that in the former case the maximum limit of liability is fixed by the policy, while in the latter case the undertaking is to make good any and all loss resulting from defect or failure of the title.”

The C of T is merely evidence that the title is without defect, meaning all ownership heretofore has been legitimate.  The above definition says nothing about YOUR ownership.  It is merely some research done before you take possession of the land.

This is relevant because, in the Torrens system, once registered, the one applying for registration is to be issued a “Certificate of Title”.

See next post for more on the Torrens System.