THREAD: A brief history land ownership and taxes

Our legal principles of ownership derive from English common law, dating back to feudal times.

It's fascinating history and important background to understand title issues. 👇 Image
1) After the Norman Conquest, William the Conquerer declared that all land belonged to the king.

He gave his supporters, who became barons, ownership over vast parcels of land (a fiefdom). In return, they provided knights for military service in proportion to their holdings. Image
2) There were two ways for a baron to provide knights:

a) use the money earned from the land to hire mercenaries

b) carve out of their land a smaller fiefdom, known as a manor, to a knight in exchange for service

In this way, a feudal hierarchy was established.
3) A knight was a lord of their land (hence "landlord"), but also a tenant of their superior lord (the baron). The king, without superior, was the lord paramount.

At the bottom were serfs, who paid rents to the lord in exchange for the right to cultivate the land.
4) In 1086, William commissioned a survey of the kingdom to establish who owned what, for tax purposes.

This registry became known as the Domesday Book. It was first of its kind and the last in England for the next 800 years.
5) The system evolved to favor monetary payment of taxes.

Nobles wanted to avoid military service and let the king hire knights.

This made it much easier for the king to raise taxes.

Eventually, limiting feudal payments became a major motivation of the Magna Carta.
6) How does this relate to the modern era?

Well, land ownership was traced through the hierarchy of grants, all the way to the king. For example, the baron granted to the knight, and the king granted to the baron.

This is where we get our concept of title chain.
7) Additionally, our tax system is unchanged.

In the 1100s, a knight paid rent to the baron, who paid tax to the king.

Today, a tenant pays rent to the landlord, who pays property tax to the government.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Evan Rosenfeld

Evan Rosenfeld Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @evanmr

5 Feb
THREAD: Title insurance — profitable cabal or steady workhorse?

Decide for yourself how this industry can pay huge sales commissions while sporting the lowest payout ratio in the insurance sector.

Time for a thread 👇👇👇 Image
Title insurance policy protects the policy holder from financial losses due to defects in title.

For a refresher on title, deeds and why title insurance exists, read this thread.

Title insurance covers all sorts of unexpected issues

• Inconsistent wills
• Restrictive covenants
• Missing or flawed records
• Ownership by another party
• Incorrect signatures, forgery and fraud
• Encumbrances and judgements against the property
Read 16 tweets
3 Feb
Real Estate Title & Deeds 101

Read on for the truth about how property ownership actually works, why our current system is a mess, and what the next generation will look like Image
First, some real estate definitions

"Title” refers to the ownership rights of a piece of property.

A “deed” is a document that transfers ownership from one party to another, which can provide evidence of title.

Confusingly, "title" is often used to mean "deed".
The most important issue in title is: how do you definitely know who holds it?

For some historical background, check out this thread to see how our system originated in English feudal times and how ownership was recorded in the Domesday Book.

Read 10 tweets
26 Jan
Commercial Real Estate Money Reveal

Few people know just how much money flows through our ecosystem. Time to change that.

Follow me behind the scenes of a $10M apartment sale.

You won’t believe the number of parties involved or how much they earn.

Take the red pill 👇👇👇
1) Listing brokers represent the seller and market the property to find a buyer.

Compensation is ~2% of sales price, with a bonus for exceeding the target sales price.

They can also represent the buyer to earn even more.

Comp: $200 - 250k
2) Buyer's agents are less common in commercial deals because

➡️ the buyers are more sophisticated
➡️ unlike the residential world, commercial brokers tend not to share fees

They can make 0.5 - 2%

Comp: $50 - 200k
Read 34 tweets
26 Jan
1) A lot of people are seeking advice on how to scale up from a 4-unit.

Brokers with bigger properties aren't giving them the time of day.

I've been there. You need a credibility package.
2) Understand where the other side is coming from.

Brokers are bogged down by unqualified tire kickers. Until you can show otherwise, you are in this bucket.

Your 4-unit experience is considered residential and doesn't transfer over to 5+ commercial.
3) Your credibility package addresses each concern point by point.

✅ Introduce yourself and declare that it's not just about one transaction.

"I'm Evan, I own 4 units and I'm looking to partner a broker like yourself who can help me grow my portfolio."
Read 8 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!