How Title is Held Flashcards
Deed and title
Two separate legal concepts
When you own a property completely you will possess both a deed and a title
The deed is the paper that proves you own the title
Deed
A document that shows you have transferred ownership of a property
Title
The legal right to own and use the property
Immovable
The asset cannot be moved it is either land or some sort of interest in the land
A property has the ability to be passed on forever if the correct requirements are met no fixed length of ownership
Estates
Estate requirements
-ownership of the property can be transferred or sold to another individual
-as long as you pay your taxes, pay the mortgage on the property on time, and follow the law, the owner, or the owners heirs can own the property forever
-if in any case the property owner dies, the property can be inherited by his or hers heirs
Condition Precedent
Is a type of fee simple defeasible estate that requires that a specific condition be met to keep estate, this type of ownership lasts as long as the condition is satisfied
Condition Precedent
Is a type of fee simple defeasible estate that requires that a specific condition be met to keep estate, this type of ownership lasts as long as the condition is satisfied
How title is held
In severalty (one owner)
Co-Ownership (more than one owner)
Ownership by trust
Severalty
To hold by themselves 1 single owner
-the form of ownership in which one individual takes title to a property, has important consequences. No one should ever purchase a property without first seeking proper counsel.
-owner possesses the entire bundle of legal rights: the right to posses property in lawful manner, sell the property, transfer ownership by gift, restrict it with a mortgage, lease the property in a lawful manner
Co-Ownership
-when multiple owners hold title as tenants in common
- each holders share becomes part of his or hers private estate at death
Forms of Co-Ownership
-when more than one owner is listed on a deed to real estate, each owner has specific legal rights to the property. The exact nature of these rights depends on the form of co-ownership
-special forms of co-ownership that are available only to married couples. Marital property rights depend on weather the state is a community property state or a common law state
Ownership by one person or corporation is called
Ownership in severalty
The type of ownership that grants each owner a full and undivided right of possession is called
Tenancy in common
Ownership of real estate by one owner is called
Severalty
Joint Tenancy (PITT)
P - Unity of Possession
I - Unity of Interest
T - Unity of Time
T - Unity of Title
The four unities necessary to create a joint tenancy. You have to have all four.
The Right of Survivorship
If one of the joint tenants die it automatically goes to other joint tenant
- this can be husband and wife can automatically infer this otherwise just referred to as joint tenant
P - Unity of Possession
All joint tenants have equal right to presses the property
I - Unity of Interest
All have equal share in the property
T - Unity of Time
All enter into the agreement at the same time
T - Unity of Title
Convey to everyone at same time with the same document/deed
Joint tenancy
-owned by two or more people (weather married or unmarried)
-Right of survivorship
-no formal legal action required
-If there is only two joint tenants, the death of one of the owners terminates the joint tenancy
- what happens if there are three or more - then goes to other tenants (equally)
Tenancy in
Common
-There are multiple owners of a piece of property,
and each owner owns their interest separately.
-Although the ownership interest is divided, but the property itself is not.
-Each owner may sell, convey, mortgage, or transfer their interest without consent of other co-owners.
-No individual tenant may transfer ownership of the entire property.
Right of
Survivorship
Ownership in a property such that if one of the joint tenants passes away, that share of the property automatically goes to the other owner(s). This is not limited to spouses and can include more than two people.
Joint Tenancy
Multiple ownership of a property, with the distinguishing feature of the right of survivorship. If one of the joint tenants dies, the remaining tenants remain joint tenants.
Tenants by the
Entirety
An estate in which two spouses own property and specifically indicate tenants by the entirety. That means that neither one of them can dispose of the property alone. Both of them have to sign the deed together.
This is not practiced in the state of Utah.
Trustee
The person who holds the title of a trust property for a beneficiary and has the legal responsibility to administer it only as specified.
Trustee (4 things)
A trustee is responsible for managing the property owned
by a trust
His or her exact duties can vary based the assets
If the trust consists of bank and investment accounts, the trustee would be accountable for managing these
accounts
If the trust owns rental real estate, the trustee would be responsible for supervising the property. This includes communicating with the tenants, overseeing repairs,
insurance and inspections that are required
Tenancy in Common (3 things)
-Tenants in common can be related to each other or unrelated. The relationship between the parties, if any, makes no difference.
-Husbands and wives can hold title as tenants in common
-Ownership can be held in equal shares or unequal shares
Community Property
If one spouse of a married couple buys a piece of property, whether the spouse is indicated on the title or not, that spouse has a right to that property.
Not practiced in the state of Utah.
Trust
An asset set aside and held by another party for the benefit of someone else. For example, parents often set aside trusts for the benefit of their children.
Trustor
The person who creates a trust and
contributes property to it.
Beneficiary
A person entitled to the benefit of a trust
arrangement.
Land Trust
A trust in which real property is held as the
asset for a beneficiary.
Partnership
An entity organized to invest in real estate. Dealing with a property owned by a partnership requires going through the
partnership agreement.
Real Estate Investment Trust (REIT)
An investment vehicle. Buying certificates of the trust itself, not title ownership of the company that owns the property.
Timeshare Ownership
A property with a divided form of ownership or use rights in which each owner is allotted a different period of time in which to use the property.
Planned Unit Development
Property ownership similar to owning a condominium, but it includes owning the footprint of the real estate under the unit. Rather than an undivided interest, you would have an easement (right to access) to the common areas.
Escheat
The transfer of title to a state authority when no eligible heirs are available.
Voluntary Dedication
The voluntary transfer of private property
to the public for public use.
Statutory Dedication
The transfer of private property to the public for public use in writing through a deed.
lis pendens
A pending legal action, or notice of
pending legal action.
Adverse Possession
A legal principle in which a person without legal claim to a property attempts to claim legal ownership because they have a history of continuous use of the property. Commonly
referred to as “squatter’s rights”
Open and Notorious
A condition that must be met for adverse possession; the person must have been using the land in an open and obvious way.
Hostile
A condition that must be met for adverse possession; the person must be using the land in a way that is contrary to the wishes of the owner.
Continuous
A condition that must be met for adverse possession; the person must maintain all conditions of adverse possession at all times during the statutory period.
Quiet Title Action
A lawsuit brought to court to establish a party’s title to real property and clarify any confusion that may exist about who owns the property.
“PITT” is an acronym that helps us understand the four unities associated with:
A: Tenancy In Common
B: Community Property
C: Joint Tenancy
D: Tenancy In Common
C: Joint Tenancy
A legal arrangement in which property is transferred by a trustor to a trustee for the benefit of a beneficiary is called:
A: Community Property
B: A Limited Liability Corporation
C: A Partnership
D: A Trust
D: A Trust
The XYZ Company owns a condo in Park City. Property owned solely by a corporation is called a(n)?
A: Severalty
B: Cooperative
C: Partnership
D: Time Share
A: Severalty
Susan and Bill own a home as joint tenants. When Bill dies, his interest will pass to:
A: Bill’s Heirs
B: The State Through Escheat
C: His Trust
D: Susan, As The Surviving Owner
D: Susan, As The Surviving Owner
The form of ownership that is most similar to Joint Tenancy but pertains only to husband and wife is called a(n):
A: General Partnership
B: Cooperative
C: Tenancy By The Entirety
D: Tenants In Common
C: Tenancy By The Entirety
Alan would like to gift his lot in a busy downtown area. This is an example of:
A: Real Estate Trust Account
B: Voluntary Dedication
C: Lis Pendens
D: Adverse Possession
B: Voluntary Dedication
To make a valid claim of adverse possession, the possessor must show that her possession was:
A: Open And Notorious
B: Continuous
C: Hostile
D: All Of The Above
D: All Of The Above
A lawsuit used to clear title is called a(n):
A: Lis Pendens
B: Adverse Possession
C: Quiet Title Action
D: Statutory Dedication
C: Quiet Title Action
Stephanie and Chris own a home together as joint tenants. Chris dies. Which of the following statements are TRUE?
A: Stephanie Owns The Property In Severalty
B: Stephanie Owns The Property As The Remainderman In A Life Estate
C: Chris Has The Right To Will His Interest To His Children
D: Ownership Cannot Be Established Until Chris’ Estate Goes Through Probate
A: Stephanie Owns The Property In Severalty
The type of tenancy where each tenant holds a fractional, undivided interest is called:
A: Tenancy By The Entirety
B: Joint Tenancy
C: Tenancy In Common
D: A Real Estate Investment Trust
C: Tenancy In Common
