By: Joyce Gray
November 19, 2007
Due: November 17, 2007
UNIV 4995 Senior Project
Senior Project Proposal Guideline: Literature Review, Rough Draft
This research is conducted on The Theory of Title: When does title to real property transfer in the State of Arkansas. The research reviews general arguments regarding the three theories of the transfer of title of real property throughout the United States and specifically examines title transfer within the State of Arkansas. The State of Arkansas was selected as the example state because of its proximity to surrounding states of Tennessee, Mississippi, Missouri, and Okalahoma and the frequency in which individuals change their residency between the surrounding States. The research examines the type of real estate transfer theory practiced in the State of Arkansas by reviewing relevant case laws, mortgage practices and supplementary materials dealing with contract law and collection of rents. The literature tends to suggest that Arkansas does that follow any particular lien theory and utilizes a combination of each of the three lien theories.
II. General definitions of three theories governing title transfer in United States of America:
a. Title theory.
b. Lien Theory
c. Intermediate theory
IIIGeneral effects of theories in practice
a. Effects for the lender
b. Effects for the borrower
IV. Transfer of title in the State of Arkansas
a. Prevalent theory used in State of Arkansas
b. Review of laws and regulation governing transfer of title in Arkansas
Throughout the United States the rate of housing foreclosures or mortgage defaults continues to rise at an alarming rate. This rise in foreclosures and mortgage defaults in many instances can be attributed to a weakening economy. Many individuals enticed by a strong economy freely entered agreements to purchase homes with little regard to the actual terms of their agreement. A picture of these individuals would usually find young adults in a two to three person household, who finally obtained the opportunity to live the American dream and took full advantage of that opportunity. For many of these individuals this may have been their first home purchase or with decreasing interest rates they believed they could finally afford to remodel their present home to be their dream home. These same individuals knew little about twists and turns of purchasing a home or mortgage finance laws. Many did not use lawyers and simply relied on the advice of the lenders, mortgage companies or real estate agents. Unfortunately, the economy failed to cooperate as those families with two person incomes dropped to one person incomes and those adjustable rate mortgages increased beyond household income. The end result is a slow housing market with individuals actually losing their homes in drastic numbers or selling their homes at reduced prices, which usually means a lost for the average home owner. It affects their ability to purchase a new home and decreases the amount of funds that will be available to local economies through the purchase of other consumer goods.
Because our country has become so mobile, allowing individuals to move from place to place with ease, many individuals had no problem locating new areas in various states to call home. Examples of the easy mobility concept are individuals living in the State of Tennessee who find it extremely easy to purchase a home in Arkansas or Mississippi and maintain their jobs in Tennessee. In fact, with the growing pressure to leave the fast life and crime often found in large...