Merger Of Title
In everyday discourse, a merger defines the combination of two entities, be it real estate or two companies, into a single and legit one. We should make a difference between a merger and acquisition. As opposed to a merger, acquisition implies a larger entity absorbing a smaller one without creating an entirely new entity. Mergers and acquisitions can impact real estate to a significant degree.
A merger’s advantages are numerous. It reduces operating expenses and increases the absorbing company’s or land’s value. Besides merging a neighboring land with your own, there are other ways to boost your real estate’s worth, such as water installations, house renovations, and green building materials.
Merger in real estate
Typically, the meaning of a merger of the title refers to forming two or more parcels of property under one title. Usually, the smaller parcel (s) are joined to the property title of the more extensive estate. The merger of property titles often occurs in a real estate settlement where adjoining parcels of property merge under one title.
For example, Jack Abbot is the heir to the adjacent property estate of his father, Brian. Upon Brian’s death, a merger of title occurs. Since Jack’s property is smaller, his land is joined with his father’s property to form one common property.
Merger doctrine in property law
The merger doctrine defines the proposition that the contract of property title transfer merges into the deed of conveyance (a legal document proving that the previous owner transferred the deed or title to the buyer). Thus, those guarantees set in the contract and do not show up in the deed shall be nullified, when the deed is transferred to the new property owner.
In other words, arrangements or deed covenants between sellers and buyers will merge into the deed’s transfer upon the buyer taking the document. Hence, the act turns into the single binding means between the seller and the buyer, annulling the provisions determined by the property purchase contract.
Only in the case of covenants of title is the merger doctrine applied. On the other hand, stipulations or promises referring to a property’s concrete physical condition will not merge and will not be nullified. For instance, the previous owner promised that the insulation was good. Upon transfer, the promise will not extinguish. Besides, one must pay attention to the so-called covenants running with the land.
The merger of title easement
Let’s suppose a landowner holds an easement on an adjacent property and retains a right to use another’s land for a well-defined purpose. Later, they purchase that specific piece of land. Then, the easement will immediately terminate by necessity due to the merger of title. It’s only logical; a landowner will not hold an easement on their real estate, basically acting against their interests.
Suppose you’re interested in purchasing an additional and neighboring property. You might find a professional local real estate agent’s advice helpful.
Popular Real Estate Terms
Deed used to convey property back to the original property owner. Normally a reconveyance deed is issued upon the satisfaction of a property's mortgage. ...
Tax term describing current and necessary business expenses. Ordinary and necessary business expenses do not include long-term capital losses. For example, the XYZ stationary store deducts ...
Civil rights acts passed by the U.S. Congress includes those of 1866, 1870, 1871, 1875, 1964, and 1968. The first two acts gave blacks the rights to be treated as citizens in legal actions, ...
Listing Agreement A.K.A. Listing is basically a contract allowing a real estate agent or broker to list a home for sale and act as the home seller agent representing his/her interests ...
Sometimes a landlord agrees to implement within the rent contract the possibility of the tenant buying the house at a certain price, by a certain date. It’s what’s called in the ...
Home designs developed after World War II incorporating modern technology, materials, and architecture including energy conservation methods to achieve a highly functional structure. ...
In our day-to-day life, we often bump into the question, “What does subordinate mean?” The official subordinate definition says, “to consider or treat something or someone ...
The term “a priori” can be pretty puzzling in real estate. Originating from Latin, “a priori” translates to "from the earlier" or "from the former." This concept, ...
Timeshare homes is the popular name given to the concept of fractional ownership in real estate, and, in fact, is a better term to explain its meaning.Why?Well, fractional ownership means ...
Comments for Merger Of Title
I have properties that have been combined, do I need to get a new deed to show they are one property now?
May 17, 2021 07:43:42Hello Connie! Thank you for reaching out to us, but unfortunately, we cannot provide legal advice. A merger of title can depend on your individual situation, which is why we suggest that you contact a real estate agent in your area who can either help you with the particular information that you are looking for, or they might be able to suggest a real estate attorney who will be more than qualified to clarify your situation. We are more than happy to help you out with any question related to real estate transactions.
May 19, 2021 09:34:44A merger of estates. The grantor put a restriction on a conveyance. He is the holder of a license controlling the conveyance. He conveyed 1/3 rd to himself in the conveyance as tenants in common. Does the merger of title occur in the grantor or the TIC grantee?
Aug 31, 2019 08:01:07Hello, David! Thank you for reaching out to us. Unfortunately, we cannot provide legal advice. Please contact any realtors in Pennsylvania. Most real estate professionals can recommend a real estate lawyer who can provide an answer to your question. We are happy to assist you with anything related to the process of buying, selling and renting a home.
Sep 03, 2019 05:42:33Have a question or comment?
We're here to help.