Item J2
lAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: July 14, 2004
Bulk Item: Yes No X
Department: Land Authority
Agenda Item Wording: Approval to waive the marketability of title requirement in three conservation
land transactions.
Item Background: This item is proposed to resolve closing issues in three transactions for the
purchase of conservation land in Largo City, Palma Sola, and Windward Beach Estates subdivisions.
In each case the title held by the Seller fails to meet the marketability standards of the Florida Bar and
the Seller is either unable or unwilling to correct the title defect. See the attached memo for further
details.
Staff is requesting authorization from the Board to waive the marketability of title requirement for each of
these transactions and accept the property title "as is." This recommendation is based on a relatively
low risk of title claims, a relatively small financial exposure, public ownership of adjoining property, and
the need to resolve property rights issues.
Advisory Committee Action: To be considered at July 29, 2004 meeting.
Previous Governing Board Action: The Board waived the marketability of title requirement in one
other instance, which involved a lot in Largo City subdivision on December 17,2003.
Contract/Agreement Changes: NIA
Staff Recommendation: Approval, subject to the consent of the Advisory Committee on July 29.
Total Cost: No additional cost
Budgeted: Yes
No
Cost to land Authority: Source of Funds:
Approved By: Attorney ~ County Land Steward
Executive Director Approval: ^"1' \
I~r!::
Documentation: Included: X
To Follow:
Not Required:
Disposition:
Agenda Item LA #2
~
'UI
MONROE COUNTY LAND AUTHORITY
1200 TRUMAN AVENUE, SUITE 207 · KEY WEST, FLORIDA 33040
PHONE (305) 295-5180 · FAX (305) 295-5181
MEMORANDUM
TO:
FROM:
Land Authority Governing Board
Land Authority Advisory Committee
Mark Rosch, Executive Director M lL
Larry Erskine, Legal Counsel l ~
June 24, 2004
DATE:
SUBJECT: Marketability of Title Issues
Summary
Staff is requesting authorization from the Board and the Advisory Committee to waive the marketability
of title requirement for three transactions and to accept the property title "as is." This recommendation
is based on a relatively low risk of title claims, a relatively small financial exposure, public ownership of
adjoining property, and the need to resolve property rights issues.
Details
The Land Authority has entered into purchase agreements for the following conservation lands:
Seller
Property
Purchase Price
Nature of Defect
Don and Merri Wehe
Block 3, Lot 15
Largo City subdivision
Key Largo
$7,532.50
Tax deed
Doris E. Cosgrove
Block 6, Lots 8 and 9
Palma Sola subdivision
Tavernier
$12,650.00
Requires ancillary
probate in Florida
Jack and Ruth Norris
Block 2, Lots 32-35
Winward Beach Estates
Little Torch Key
$2,000.00
Gap in chain of title
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In each case the title held by the Seller fails to meet the marketability standards of the Florida Bar and
the Seller is either unable or, given the relatively small purchase price involved, unwilling to correct the
title defect.
· In the case of the Wehe transaction, the Seller obtained title via a tax deed in 2002. In order to
convey marketable title, the Seller needs to obtain a conveyance from the prior owner or file a suit to
quiet title. However, if no valid claims to the title are filed by 2006, the passage of time will also cure
this defect. To close this transaction, staff proposes to review the Clerk's file to confirm the tax sale
was properly noticed and to accept a deed from the Seller.
· In the case of the Cosgrove transaction, the Seller is deceased. Although the heirs have probated
Ms. Cosgrove's will in California, they have not conducted the ancillary probate proceedings in
Monroe County necessary to pass marketable title to the Palma Sola property. To close this
transaction, staff proposes to obtain deeds from all heirs to the property identified in the California
probate documents.
· In the case of the Norris transaction, there is a gap in the chain of title between the last valid deed
and the Seller's deed. This gap results from the omission of the subject lots, perhaps inadvertently,
from a group of lots in a trustee's deed recorded immediately prior to the bankruptcy of a prior
owner in 1974. The Seller's deed has been recorded since 1983 with no adverse claims of record.
To close this transaction, staff proposes to accept a deed from the Seller.
For each of the above transactions, staff feels that the risk associated with closing "as is" is acceptably
low under the circumstances. Each of the subject properties is within an environmentally sensitive area
and adjoins other properties owned by the Land Authority. Each of the subject properties would be
difficult to develop due to the County's zoning andlor environmental regulations. In the worst case
scenario of successful third party claims against the Land Authority's title in all three transactions, the
Land Authority's total financial exposure for the seven lots at issue would not exceed $24,400.
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