Title Issues (Estates/Transfers/Titles) Flashcards
What is the synonym of the “estate in severalty”?
Sole Ownership
Transfer of interest, equal ownership, unity of ownership, and survivorship are all requirements of what?
Joint tenancy
Who is considered a trustee?
A fee owner who holds and manages the estate for the benefit of another party
Ownership in severalty is defined as?
A single party owns the fee or life estate (sole ownership)
Tenancy in common is the most common form of ownership when the owners aren’t married. It’s also known as what?
Estate in common
What does the right of survivorship mean?
If a joint tenant dies, all interests and rights pass to the surviving joint tenants free from any claims of creditors or heirs.
If a defective conveyance to the title was found, what would it create?
A clouded title to the property
What happens if the chain of title is broken?
There is a cloud on the title
Lenders require a seller to deliver what at closing?
A marketable title
A utility right of way, a neighbor’s fence encroaching, and a driveway easement through the property are all examples of what?
An encumbrance
What statute requires certain documents to be in writing to be enforceable?
The Statute of Frauds
Where can the statement of the status of all recorded liens and encumbrances affecting the property can be found?
Abstract of Title
What is commonly accepted as the best evidence of marketable title?
Title insurance policy
Who should have title insurance?
Both the buyer and the lender need title insurance.
Reviewing risks that might not appear in the public record, examining all records of the property’s history, and interpreting the legality of the records are all duties of whom?
Title company
Community property:
Property that belongs to both spouses equally.
Separate property:
Property, under community property rules, that belongs to one spouse.
(Usually, it is property owned at the time of marriage, the result of an inheritance or gift during the marriage)
Clouded title
When there’s a missing link in the chronology of owners, or if there was a defective conveyance, the chain is said to be broken.
Ownership In severalty
A single party owns the fee or life estate. Also referred to as sole ownership and tenancy in severalty.
Co-ownership
When a parcel is owned by two or more persons or organizations. Co-owners are called co-tenants.
Joint tenancy
When two or more people collectively own property as if they were a single person (rights and interests are indivisible and equal)
*A joint tenancy relationship must be created by a written agreement specifying intention to create a joint tenancy.
Torrens system
System where title passes only when the conveyance has been duly registered on the title certificate itself.
What does ‘Suit to quiet title’ do?
Clears the title record of any unrecorded claims.
Lien
An indication of debt secured by the property.
Encumbrance
Indication that some other party has some rights or claim to the property.
Abstract and opinion
A historical summary of all consecutive grants, conveyances, wills, records, and judicial proceedings that affect the title of a specific property.
Knowledge of a fact that a person could (or should) have obtained is defined as:
Constructive Notice
