Chapter 2 Flashcards
Explain different forms of ownership, types of title insurance, chain of title, title abstract, grantor/grantee
Define in severalty
Held by only one owner
Define co-ownership
Held by two of more people
Define in trust
Held by a third part for the benefit of someone else
What are the two types of co-ownership recognized in MN?
- Tenancy in common
2. Joint tenancy
What are synonyms for estate ownership in severalty?
Sole ownership or tenancy in severalty
Name some defining characteristics of tenancy in common
- Two or more owners
- Identical rights
- Interests individually owned
- Elecatable ownership shares
- No survivorship
- No unity of time
Name some defining characteristics of joint tenancy.
- Unity of ownership
- Equal ownership
- Transfer of interest
- Survivorship
To create joint tenancy, what must all owners acquire
- Unity of time
- Unity of title
- Unity of interest
- Unity of possession
Term that refers to the legal ownership of property, both real and personal, along with their tangible and intangible interests
Title
Briefly summarizes the various activities affecting ownership of a parcel of land
Abstract of title or title abstract
Examination of the history of a properties title
Title search
If the title search fails to discover any uninsurable defects, the company issues a what?
Binder
When is title insurance paid?
It’s paid one time, when the property passes from one owner to another.
Who should have title insurance?
Both the buyer and the lender
What are loan policies?
- to protect lenders
- also called a lender policy
- policy will repay the balance of the mortgage if a claim against the property voids the title.
- remain in effect until the loan is repaod
What are owner policies?
- to protect the property buyers
- insure property against specific kinds of claims listed in the policy.
- only covers the policy holder up to the value of the property at the time the owner purchased the property
What is the Torrens System?
Title passes only when conveyance has-been duly registered on the title certificate itself.
This refers to the succession of property owners of record dating back to the original grant of title from the state to a private party
Chain of title
What may an owner due to remove a clouded title
Initiate a suit to quiet title - clears the title record of ant unrecorded claim
This requires certain documents to be in writing to be enforceable.
Statue of frauds
Knowledge of a fact that a person could have or should have obtained
Constructive notice or legal notice
Has actual notice if something
Actual notice
Identifying the list of owners front be present or current owner back the original owner
Running the chain of title
A suit pending means
Lis pendens - written notice that a lawsuit has been filed
A court ruiling gives creditors the right to take possession of a debtors real property
Judgement lien
A lien placed on a property by the lender when granting a mortgage for a property
Property lien
Creation of an index based on the names of the grantors and the grantees
Grantor/grantee system of indexing
Method of identifying the boundaries of a parcel of real estate using reference points, distances, and angles
Metes and bounds
Used to describe properties in residential, commercial, and industrial subdivisions
Lot and block system
When a single individual or entity owns a fee or life estste in a real property, the type of ownership is?
- Tenancy in common
- Tenancy by the entirety
- Absolute fee simple
- Legal fees simple
- Tenancy in common
What gives an owner protection from any other titles to tbe property that are not recorded in the public record?
Recording the deed
The four unities required to create a joint tenancy include which of the following?
- Parties must acquire respective interests at the same time
- parties must be legally married
- Parties must be family members
- Parties must have joint financial resources
- . Parties must acquire respective interests at the same time
