Definition of "Merger of title"

Liz Farrow real estate agent
Liz Farrow, Real Estate Agent Exp Realty LLC

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

 

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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 covenantsrunning 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.

Comments for Merger Of Title


Connie Womboldt Connie Womboldt said:

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  07:43:42

 
Real Estate Agent

Hello 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  09:34:44
 
David Stark David Stark said:

A 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  08:01:07

 
Real Estate Agent

Hello, 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  05:42:33
 
 

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