Utah Real Estate Code 57-1-10

Utah Real Estate Code 57-1-10: After-Acquired Title Passes.

(1) If any person conveys any real estate by conveyance purporting to convey the real estate in fee simple absolute, and at the time of the conveyance the person does not have the legal estate in the real estate, but afterwards acquires the legal estate: (a) the legal estate subsequently acquired immediately passes to the grantee, the grantee's heirs, successors, or assigns; and Utah Code Page 4 (b) the conveyance is as valid as if the legal estate had been in the grantor at the time of the conveyance.

(2) Subsection (1) does not apply to a conveyance by quitclaim deed.

After acquired title refers to a title held by a person who bought property from a seller who acquired title only after purporting to sell the property to the buyer. When a seller conveys land to another on the belief that s/he had good title to the land, and later s/he acquires title to that land, then buyer automatically acquires title to the transferred land. As soon as the seller actually acquires title, title passes to the person to whom it was sold. However, this doctrine of after-acquired title generally does not apply when the seller receives title by quitclaim deed. The deed conveying the land must include words expressing an intention to vest title in the grantee. Future acquired property, which is also known as after-acquired property, encompasses both personal property and real property and provides additional collateral to ensure that a loan will be satisfied. There must, however, be a provision in the loan agreement between the borrower and the lender that gives the lender a right to the specific property of the borrower that he or she acquires subsequent to the execution of the agreement. Secured transactions frequently involve the treatment of personal property as future acquired property. For example, a debtor who owns a retail store might accept a future acquired property provision in a security agreement with a creditor in order to obtain funds to buy additional inventory. The purchase of new inventory constitutes additional collateral that ensures the satisfaction of the loan. Language commonly used to phrase a future acquired property term in a contract is "any or all obligations covered by the security agreement are to be secured by all inventory now or hereafter acquired by the debtor." Mortgages, particularly those affecting commercial properties, involve the treatment of real property as future acquired property. The mortgagee (who is the lender) will include in the mortgage an after-acquired property clause which provides that the mortgagee will have an equitable lien, which is a right to have property used to repay a debt, in all the real property that the mortgagor (who is the borrower) obtains after the mortgage is executed.

Real estate is a kind of property that's made up of land, as well as any structure that sits on it. Improvements to the structure also count toward the property. The definition also includes any other resources that may appear on that piece of land including vegetation, livestock, crops, natural resources, and even water. Real estate can be both commercial and residential. Commercial properties include office buildings, warehouses, shopping centers, and other types of retail space. Residential property, on the other hand, is made up of homes, condominiums, apartments, and any other type of property that is meant for residential living. People can own real estate for their primary residence or to hold as an investment rental property.

The term title refers to a document that lists the legal owner of a piece of property. Titles can be issued to depict ownership of both personal and real property. Personal property is anything that doesn't include real estate such as appliances, antiques, or artwork. Real property, on the other hand, is anything tangible like real estate. Title for real property must be transferred when the asset is sold and must be cleared for transfer to take place. This means it must be free of liens or encumbrances that could pose as a threat to its ownership.

Unlike other real property assets, real estate ownership can take several forms, with each having implications on ownership transfer, financing, collateralization, and taxing. Each type of title method has its advantages and disadvantages, depending on an individual's particular situation and how one wants ownership to pass in the event of such things like death, div...

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Utah Real Estate Code 57-1-10

Utah Real Estate Code 57-1-10: After-Acquired Title Passes.

(1) If any person conveys any real estate by conveyance purporting to convey the real estate in fee simple absolute, and at the time of the conveyance the person does not have the legal estate in the real estate, but afterwards acquires the legal estate: (a) the legal estate subsequently acquired immediately passes to the grantee, the grantee's heirs, successors, or assigns; and Utah Code Page 4 (b) the conveyance is as valid as if the legal estate had been in the grantor at the time of the conveyance.

(2) Subsection (1) does not apply to a conveyance by quitclaim deed.

After acquired title refers to a title held by a person who bought property from a seller who acquired title only after purporting to sell the property to the buyer. When a seller conveys land to another on the belief that s/he had good title to the land, and later s/he acquires title to that land, then buyer automatically acquires title to the transferred land. As soon as the seller actually acquires title, title passes to the person to whom it was sold. However, this doctrine of after-acquired title generally does not apply when the seller receives title by quitclaim deed. The deed conveying the land must include words expressing an intention to vest title in the grantee. Future acquired property, which is also known as after-acquired property, encompasses both personal property and real property and provides additional collateral to ensure that a loan will be satisfied. There must, however, be a provision in the loan agreement between the borrower and the lender that gives the lender a right to the specific property of the borrower that he or she acquires subsequent to the execution of the agreement. Secured transactions frequently involve the treatment of personal property as future acquired property. For example, a debtor who owns a retail store might accept a future acquired property provision in a security agreement with a creditor in order to obtain funds to buy additional inventory. The purchase of new inventory constitutes additional collateral that ensures the satisfaction of the loan. Language commonly used to phrase a future acquired property term in a contract is "any or all obligations covered by the security agreement are to be secured by all inventory now or hereafter acquired by the debtor." Mortgages, particularly those affecting commercial properties, involve the treatment of real property as future acquired property. The mortgagee (who is the lender) will include in the mortgage an after-acquired property clause which provides that the mortgagee will have an equitable lien, which is a right to have property used to repay a debt, in all the real property that the mortgagor (who is the borrower) obtains after the mortgage is executed.

Real estate is a kind of property that's made up of land, as well as any structure that sits on it. Improvements to the structure also count toward the property. The definition also includes any other resources that may appear on that piece of land including vegetation, livestock, crops, natural resources, and even water. Real estate can be both commercial and residential. Commercial properties include office buildings, warehouses, shopping centers, and other types of retail space. Residential property, on the other hand, is made up of homes, condominiums, apartments, and any other type of property that is meant for residential living. People can own real estate for their primary residence or to hold as an investment rental property.

The term title refers to a document that lists the legal owner of a piece of property. Titles can be issued to depict ownership of both personal and real property. Personal property is anything that doesn't include real estate such as appliances, antiques, or artwork. Real property, on the other hand, is anything tangible like real estate. Title for real property must be transferred when the asset is sold and must be cleared for transfer to take place. This means it must be free of liens or encumbrances that could pose as a threat to its ownership.

Unlike other real property assets, real estate ownership can take several forms, with each having implications on ownership transfer, financing, collateralization, and taxing. Each type of title method has its advantages and disadvantages, depending on an individual's particular situation and how one wants ownership to pass in the event of such things like death, div...

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Utah Real Estate Code

Utah Real Estate Code 57-1-5.1 Termination Of An Interest In Real Estate - Affidavit.

(1) Joint tenancy, tenancy by the entirety, life estate, or determinable or conditional interest in real estate may be terminated by an affidavit that: (a) meets the requirements of Subsection (2); and (b) is recorded in the office of the recorder of the county in which the affected property is located.

(2) Each affidavit required by Subsection (1) shall: (a) cite the interest that is being terminated; (b) contain a legal description of the real property that is affected; (c) reference the entry number and the book and page of the instrument creating the interest to be terminated; and (d) if the termination is the result of a death, have attached as an exhibit, a copy of the death certificate or other document issued by a governmental agency as d in Section 75-1-107 certifying the death.

(3) The affidavit required by Subsection (1) may be in substantially the following form: "Affidavit State of Utah County of ___________) I, (name of affiant), being of legal age and being first duly sworn, depose and state as follows: (The name of the deceased person), the decedent in the attached certificate of death or other document witnessing death is the same person as (the name of the deceased person) named as a party in the document dated (date of document) as entry _______ in book _______, page _______ in the records of the (name of county) County Recorder. This affidavit is given to terminate the decedent's interest in the following d property located in ___________________ County, State of Utah: (description of the property). Dated this ______ day of ___________________, ________. _____________________________________ (Signature of affiant) Subscribed to and sworn before me this _______ day of ______________, _________. _____________________________________

Priority, Termination of the Mortgage, and Other Methods of Using Real Estate as Security

Priorities in Real Property Security

You may recall from Chapter 16 "Secured Transactions and Suretyship" how important it is for a creditor to perfect its secured interest in the goods put up as collateral. Absent perfection, the creditor stands a chance of losing out to another creditor who took its interest in the goods subsequent to the first creditor. The same problem is presented in real property security: the mortgagee wants to make sure it has first claim on the property in case the mortgagor (debtor) defaults.

The General Rule of Priorities

The general rule of priority is the same for real property security as for personal property security: the first in time to give notice of the secured interest is first in right. For real property, the notice is by recording the mortgage. Recording is the act of giving public notice of changes in interests in real estate. Recording was created by statute; it did not exist at common law. The typical recording statute calls for a transfer of title or mortgage to be placed in a particular county office, usually the auditor, recorder, or register of deeds. A mortgage is valid between the parties whether or not it is recorded, but a mortgagee might lose to a third party—another mortgagee or a good-faith purchaser of the property—unless the mortgage is recorded.

Exceptions to the General Rule

There are exceptions to the general rule; two are taken up here.

· Fixture Filing: The fixture-filing provision in Article 9 of the UCC is one exception to the general rule. As noted in Chapter 16 "Secured Transactions and Suretyship", the UCC gives priority to purchase-money security interests in fixtures if certain requirements are met

· Future Advances: A bank might make advances to the debtor after accepting the mortgage. If the future advances are obligatory, then the first-in-time rule applies. For example: Bank accepts Debtor’s mortgage (and records it) and extends a line of credit on which Debtor draws, up to a certain limit. (Or, as in the construction industry, Bank migh...

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