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PaperclipPerfector
1d ago
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Be advised: this thread is not for serious in-depth discussion of weighty topics (we have a link for that), this thread is not for anything Culture War related. This thread is for Fun. You got jokes? Share 'em. You got silly questions? Ask 'em.
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I think you're taking too narrow a view of "claim to this land". There's a common perception that these primarily involve claims involving a fee interest in the surface that arises from something like an unresolved estate, divorce, etc. The reality of the situation is much more complex. Consider a typical rural parcel in Western Pennsylvania, Northern West Virginia, or Southeastern Ohio:
A 20 acre tract with a house was purchased by the current owners in 2004. It has a clean chain of title with no gaps going back to patent. It was never part of an estate, lawsuit, divorce, bankruptcy, Sheriff's sale, or anything like that (the last two sentences are wholly atypical, but I'm simplifying things here). In 1901 the surface owner sold the Pittsburgh Seam coal to an intermediary who in turn sold it to a mining company, and through several further sales and corporate mergers it's now owned by Consol. In 1917 the oil and gas was leased to Allegheny Heat and Light Company, who drilled a well on the property in 1919. In 1922 the surface owner conveyed the property by deed and reserved "1/2 the oil and gas" underlying the property. The owner of the severed interest has since passed and the reserved 1/2 interest is now shared among 16 individuals, in unequal proportions. In 1940, the surface owners conveyed the Freeport Seam, but this coal was never mined. It is currently owned by Massey Energy. The 1919 well is still producing, meaning the 1917 lease is still in effect. Through various mergers and assignments, the lease is now held by Tri-Star Energy, LLC. In 2012, Tri-Star assigned the production rights to deep formations to Noble Energy. Noble then assigned the deep rights to Chevron but reserved an overriding royalty interest equal to the difference between 18% and the existing royalty burden. Statoil then assigned these rights to Rice Energy, who then merged with EQT. EQT, looking to develop the oil and gas, entered into a joint operating agreement with Chevron involving the Marcellus formation. 10.575 acres of the 20 acre tract were made part of the Piston Honda Unit. Piston Honda was then included as part of a $1.2 billion mortgage to Wells Fargo. EQT then sold the deeper Utica formation rights to Pennzoil Production Company. Over the years, there have been several recorded easements involving the property. The owners are aware of a gas line that crosses the road near the house and runs along the property's western edge, and some old telephone lines that cross the back corner of the property and may or may not be operational. When the property was purchased in 2004, it was financed through a mortgage with Wesbanco that is still in effect. In 2015, the owners took out a $25,000 revolving credit line with Dollar Bank that remains unreleased.
Under your proposed system, I count at least 27 potential claims to the property, and that's assuming that the surface owners won't have to make their own claim. "Contact us" is also vague, because in any reasonable system "contact us" means "file suit for quiet title". I say reasonable because no land registration system worth its salt would simply take a naked assertion of an interest in real property at face value. What's realistically going to happen in this situation is that every mortgage company, coal company, oil and gas company, telephone company, power company, water company, and other potential lienholder is immediately going to look through their records and file in rem actions against any piece of property upon which they have a plausible claim, seeking declaratory judgment that their claim is valid and that their interest can be recorded in the land registry. I don't even know how this would work in practice, because all those claimants would theoretically have to provide notice of the suit to all the other potential claimants, which would result in a huge mess of lawsuits that no calendar control judge could possible make heads or tails of, and there are additional complications that I won't even get into here. The worst outcome would be that the couple who bought the land in 2004, got title insurance, and haven't had any problems since are now going to find themselves defending numerous claims, and are likely going to have to spend a ton on legal fees just to maintain what they have. Is that 1965 power line easement still valid or not? West Penn Power is going to argue that it is. Companies will never concede that any right of record has been invalidated.
This is why land registration systems typically put the burden of proving title on the surface owner. In the Progressive era, this was touted as a reform over traditional title, and something like a dozen states implemented land registration systems between around 1900 and 1917. Most of these have been abolished, and the remaining ones are just pale ghosts of what they were intended to be, vestigial remnants of ill-considered reform. The problem is exactly what I stated earlier: If you're going to make title ironclad, you have to ensure that the registration accounts for all existing interests. And to accomplish this, you have to provide anyone with an interest due process to ensure that their property rights are respected. What this means in practice is that someone seeking to register title under these systems was required to conduct a thorough search and file suit in court, with any conceivable interest holder notified in the suit. Even in the early 20th Century, with fewer than 100 years having passed since patent and things like mortgages and mineral leases in their infancy, this proved an expensive prospect, which brings me to your second point:
Is it? The problem is that it places all of the burden on the person seeking to register the title. I've handled partition suits before, which are similar but much more limited actions, and you're still looking at 5 figures to resolve the suit. Get into a situation where you have to notify every party with an interest in the property, and you're now looking at the cost ballooning exponentially. All the minor claims that a title insurance company would ignore under the presumption that no one would raise them (and that if they were raised, it was rare enough that they'd just pay), now have to be litigated. And how is a court to determine if you've done the proper due diligence? If a title is registered, it's supposed to be indefeasible. But what if a critical party wasn't properly notified of the action? What if the party seeking the registration intentionally did a half-assed job in the hope that potential claimants would slip under the radar? This became a problem in states with registration as the 20th Century wore on, as the process essentially became a way for people with questionable titles to legitimize their claims so that they were beyond reproach. Otherwise, what's the benefit to the landowner? Pay $25,000 (conservatively) now so that future purchasers can save a couple thousand bucks on title insurance?
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