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HomeMy WebLinkAbout6C (6)Community & Economic � C (�) Development 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: David Relos, Economic Development Planner 6 Subject: 2010 Tax Sale Acquisitions — Quiet Title Action Professional Services Agreement — Heppenheimer & Korpal Date: December 13, 2011 At the March 2010 County Commissioner's tax sale, staff acquired 30 parcels. Seven of these parcels were redeemed within the legal redemption period, leaving 23 parcels which the Commission now has title to in the form of tax deeds. On March 8, 2011, the Commission approved a Professional Services Agreement with Heppenheimer & Korpal to do quiet title actions (see attached definition) on 14 of the 23 parcels. These 14 parcels were identified by Meridian Title as needing this step before title insurance policies could be issued. In the process of issuing title insurance on the 23 parcels, two additional parcels have been identified as needing quiet title action. The cost for these two additional parcels will be the same as that paid for the original 14, or: • $750 per parcel for the quiet title action • $156 per parcel Court filing fee In addition to these fixed charges, there will be publication and certified mailing charges. Once this process is completed, Meridian Title will issue the Commission title policies on these parcels, and the Commission can be assured of its ownership interest in them. Staff asks for a not to exceed amount of $2,112 (allowing $150 publication / mailing costs for each parcel). Staff requests favorable action on this proposal, to allow these two properties to be taken through a quiet title action, and ultimately allow the Commission an insurable interest in these properties. What We Do Today Makes A Difference! Quiet Title Law & Legal Definition Page I of 1 Title is the sum total of legally recognized rights to the possession and ownership of property. In the case of real property, an action to confirm title, sometimes referred to as an action to "quiet title" may be brought to affirm ownership of the property when others claim an interest in such property. This is often seen in relation to back tax liens or liens or easements (rights of way) on the property. A quiet title action is filed by a person or entity claiming title to all or a portion of a specific parcel of property and asks for a ruling that plaintiffs title is superior to any interest held or claimed by any of the named defendants. It is a mechanism to cure defects in the title to property, thereby providing assurance to the owner who brings the action, as well as subsequent purchasers, of the status of title and accuracy of the real property records. Reliability of real property records in the U.S. are higher than in most other countries because of quiet title actions, strict recording requirements and the involvement of title insurance companies. A quiet title action is often brought against both known and unknown parties. Known parties are those having some record interest in title or having possession of the property. Also, unknown parties may be named and served by publication in order to terminate potential claims. Unknown parties are those who may claim an interest in the property derivative of the named parties or as a result of the subject matter of the action. http: / /definitions.uslegal.com /q /quiet- title/ 2/25/2011 Nov. 30. 2011 3:25PM MTTCHRI.L K. HEPPENEEIMER. J.n. -IAXVM P. KORPAL, J.D. HEPPENHEXMEB & ]KORPA,L PROrESSIONAI. CORPORATION ATTORNEYS AT LAW 704 WEST WASHINGTON AVENUE SOUTH BEND, INDIANA 48601 (374) 232 -5803 PAX (514) 232.6490 November 30, 2011 FACSIMILE ONLY David Relos City of South Rend P.edevelopment Department 227 W..lefferson Blvd., Suite 1200S South Bend, IN 46601 Dear Mr. Relo3: No, 6839 P. 2/2 www,hepkorlaw.com Quiet Title Actions for 713 W. Indiana and 1521 S. Catalpa Please be advised that I am in receipt of your request that this office provide a proposal for the completion of quiet title actions in reference to the two above described parcels. The fee that this office charges to secure a Quiet Title judgment is $750.00 for each parcel. The filing fee for each is $156.00 (there is no requirement for a recording of the judgment once it is rendered by the court and, therefore, there are no recording feesthat I am aware of at this time.) There may be certain other out -of- pocket expenses which may require additional costs to be paid by the City. This would be for excess certified railings and the publication of a Notice that needs to occur regarding these court filings. I am not sure of the cost at this time, however, I do want to make the City aware that there is additional expenses concerning publieatioh and possible excess certified mailings required for each of these matters. If the City wishes for me to proceed in reference to this matter it is necessary to receive one -half of the fee or $375.00 for each of Cie. parcels plus the full $156.00 for each of the parcels so that 1 can proceed with the preparation and filln.t of the quiet title actions. if you have any other question regarding this matter please contact me. I thank you for the opportunity to submit this propow- Yours very truly, HEPPENHEIMER & KORPAL PROF7.Hep Ormer Mitch nhe ( Initch @%epkoriaw.corn M RH:tw