Florida's Marketable Record Title Act (MRTA) Overview

12 Questions

What is the purpose of the MRTA in addressing clouds on title?

To promote clear titles by extinguishing encumbrances after 30 years

Which type of encumbrance is NOT considered a cloud on title under the MRTA?

Zoning restrictions

What is the purpose of the statutory exceptions enumerated in Florida Statute Section 712.03?

To list the types of encumbrances that cannot be removed by the MRTA

How does the MRTA handle restrictive covenants that were imposed as part of a governmental approval process?

The MRTA does not apply to these types of restrictive covenants

What is the main purpose of the MRTA in relation to the marketability of a property title?

To extinguish encumbrances that could affect the marketability of the title

Which of the following is NOT considered an exception to the MRTA's ability to extinguish encumbrances?

Mortgages

What does a marketable record title refer to?

A title that is free of all estates, interests, claims, or charges before the effective date of the 'root of title'

What is the significance of identifying the 'root of title' in understanding the chain of title?

It establishes a standard for determining the validity of the property title

What action must a homeowners' association take to preserve their documents before the 30-year deadline as per the MRTA?

Hold a board meeting and vote to preserve the documents

In what scenario can documents of homeowners' associations be extinguished by operation of the MRTA?

When documents are not preserved before the 30-year deadline

What is required for revitalization to occur after failure to preserve documents within the deadline?

Obtaining a majority vote from affected property owners

What does the Florida Marketable Record Title Act (MRTA) focus on?

'Root of title' validity

Study Notes

Understanding Florida's Marketable Record Title Act (MRTA)

The Florida Marketable Record Title Act (MRTA), officially known as Chapter 712 of the Florida Statutes, was enacted to improve the clarity and marketability of land titles in the state. It focuses on three main areas: marketability of title, chain of title, and cloud on title, along with some exemptions.

Marketability of Title

According to Florida Statute Section 712.04, a marketable record title refers to a title that is free and clear of all estates, interests, claims, or charges, whose existence relies on any act, title transaction, event, or omission before the effective date of the 'root of title.' This establishes a standard for determining the validity and marketability of a property title.

Chain of Title

In order to understand the chain of title, we need to identify the 'root of title,' which is typically the initial deed for each lot from the developer of the homeowners’ association. If homeowners’ associations fail to preserve their documents before the 30-year deadline, their documents can be extinguished by operation of the MRTA. To preserve the documents, the homeowners' association must hold a board meeting, vote to preserve the documents, and file a statutory notice in the public records. This resets the clock for another 30 years. Failure to do so would require revitalization, which involves obtaining a majority vote from the affected property owners.

Cloud on Title

Another key aspect of the MRTA is addressing clouds on title, which are potential problems that could affect the marketability of a title. These could come from recorded instruments, such as mortgages, liens, easements, and agreements. MRTA extinguishes these encumbrances after 30 years to promote clear titles. Exceptions to this rule exist for certain types of instruments, such as those related to government regulations or government-imposed restrictions like zoning. Courts have held that these types of restrictions are not considered claims affecting marketability of title.

Exemptions

There are several statutory exceptions to the MRTA. For example, Florida Statute Section 712.03 enumerates certain types of encumbrances that cannot be removed by the MRTA. Additionally, case law recognizes an exclusion from MRTA for recorded restrictions imposed as part of a governmental approval or regulation. This means that if a restrictive covenant dated prior to the "root of title" was imposed as part of a governmental approval process, it would not be affected by the MRTA.