Curative

Curative is the work of correcting defects in title identified in a title opinion or title report. It means obtaining and recording, or filing, whatever the opinion requires: missing conveyances, releases, probate records, agency filings, or court judgments. The requirement comes first, so curative always traces to a specific defect.

What counts as a title defect

A federal rule for Rural Housing Service loans defines title defects as "Any exception or legal claim of ownership (through deed, lien, judgment, or other recorded document), on behalf of a third party, which would prevent the seller from conveying a marketable title to the entire property" (7 CFR 1927.52). The same rule requires the closing agent or approved attorney to determine "What measures are required for preparing, obtaining, or approving curative material, conveyances, and security instruments" (7 CFR 1927.55(d)(7)), and a title insurance binder to show "the curative or other actions to be taken before closing" (7 CFR 1927.55(e)).

Curative in oil and gas payments: Texas

Texas ties suspended payments to curative. A payor may withhold proceeds without interest where "a requirement in a title opinion that places in issue the title, identity, or whereabouts of the payee" has not been satisfied "after a reasonable request for curative information has been made by the payor" (Tex. Nat. Res. Code 91.402(b)(1)(C)).

Curative at the federal level

Some defects are cured by federal action. The BLM Glossary of Surveying and Mapping Terms (1980) defines a curative patent as "An instrument issued to correct a patent," noting that "Patents with conditions may be amended by new patents without conditions" and that "Such actions and documents are authorized only in special situations recognized by public land laws and agency regulations." On a federal oil and gas lease, the regulations set out what must be filed for common gaps in the lessee's record:

• Death of a lessee: rights pass to "the heirs, devisees, executor or administrator of the estate, as appropriate, upon the filing of legal documents demonstrating that the assignee or transferee is recognized as the successor of the deceased" (43 CFR 3106.81(a)).
• Change of name: it "must be reported to the proper BLM office," with the Secretary of State's certificate for a corporation (43 CFR 3106.82(a)).

When agreement is not possible

Where an adverse claimant will not sign a corrective instrument, a court judgment may be needed (see Quiet Title Action). Which cure fits a defect, and what state law accepts, depends on the defect and the state.

Why it matters in mineral title research

• Every curative item should tie to a specific requirement and a specific gap in the chain of title (see Cloud on Title).
• Curative for a federal lease has two audiences: the county records and the BLM case file. A cure recorded in one but not filed in the other leaves the records out of step.
• Finding heirs, successors, and missing recordings is research, and it has to be done before the curative instruments can be prepared.