§ 54-81. Determination of eligibility of property.

(a)

Prior to the determination of eligibility of residential properties to be placed upon the section 810 urban homesteading inventory, the department of housing and community development shall cause a title examination to be made upon each such property by an attorney competent in the area of real estate abstract work, for the purpose of ascertaining what liens and charges constituting encumbrances are in fact on the properties. A copy of the title report shall become a part of the file regarding such property. If there are monetary encumbrances or title defects appearing against any property which cannot be economically disposed of or passed through to a prospective urban homesteader, the commissioner of housing and community development shall have the right to reject the property from becoming part of the section 810 urban homesteading inventory. If, in the opinion of the commissioner of housing and community development, the monetary and other encumbrances are not sufficient to deter a prospective urban homesteader from entering into an agreement to pay all encumbrances on such property, the property shall become part of the city section 810 urban homesteading inventory.

(b)

An additional criterion as to whether or not a property can be placed upon the section 810 urban homesteading inventory shall be an opinion of counsel doing the title search that the city either can or cannot pass free and unencumbered fee simple title to the property at a point in time no greater than three years from the date of the title search. If, in the opinion of such counsel, fee simple unencumbered title cannot be so passed to an urban homesteader, the commissioner of housing and community development may reject the property from becoming a part of the section 810 urban homesteading inventory. The term "fee simple unencumbered title" as used in this section, shall not be construed to be such title as would cause rejection of those residential properties which have previously had placed upon them easements and other encumbrances of record which would not affect subsequent marketability of any such properties.

(Code 1977, § 8-5032)