Chapter 2

Question 1

Define in severalty

Answer 1

Held by only one owner

Question 2

Define co-ownership

Answer 2

Held by two of more people

Question 3

Define in trust

Answer 3

Held by a third part for the benefit of someone else

Question 4

What are the two types of co-ownership recognized in MN?

Answer 4

1. Tenancy in common

2. Joint tenancy

Question 5

What are synonyms for estate ownership in severalty?

Answer 5

Sole ownership or tenancy in severalty

Question 6

Name some defining characteristics of tenancy in common

Answer 6

1. Two or more owners
2. Identical rights
3. Interests individually owned
4. Elecatable ownership shares
5. No survivorship
6. No unity of time

Question 7

Name some defining characteristics of joint tenancy.

Answer 7

1. Unity of ownership
2. Equal ownership
3. Transfer of interest
4. Survivorship

Question 8

To create joint tenancy, what must all owners acquire

Answer 8

1. Unity of time
2. Unity of title
3. Unity of interest
4. Unity of possession

Question 9

Term that refers to the legal ownership of property, both real and personal, along with their tangible and intangible interests

Answer 9

Title

Question 10

Briefly summarizes the various activities affecting ownership of a parcel of land

Answer 10

Abstract of title or title abstract

Question 11

Examination of the history of a properties title

Answer 11

Title search

Question 12

If the title search fails to discover any uninsurable defects, the company issues a what?

Answer 12

Binder

Question 13

When is title insurance paid?

Answer 13

It’s paid one time, when the property passes from one owner to another.

Question 14

Who should have title insurance?

Answer 14

Both the buyer and the lender

Question 15

What are loan policies?

Answer 15

• 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

Question 16

What are owner policies?

Answer 16

• 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

Question 17

What is the Torrens System?

Answer 17

Title passes only when conveyance has-been duly registered on the title certificate itself.

Question 18

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

Answer 18

Chain of title

Question 19

What may an owner due to remove a clouded title

Answer 19

Initiate a suit to quiet title - clears the title record of ant unrecorded claim

Question 20

This requires certain documents to be in writing to be enforceable.

Answer 20

Statue of frauds

Question 21

Knowledge of a fact that a person could have or should have obtained

Answer 21

Constructive notice or legal notice

Question 22

Has actual notice if something

Answer 22

Actual notice

Question 23

Identifying the list of owners front be present or current owner back the original owner

Answer 23

Running the chain of title

Question 24

A suit pending means

Answer 24

Lis pendens - written notice that a lawsuit has been filed

Question 25

A court ruiling gives creditors the right to take possession of a debtors real property

Answer 25

Judgement lien

Question 26

A lien placed on a property by the lender when granting a mortgage for a property

Answer 26

Property lien

Question 27

Creation of an index based on the names of the grantors and the grantees

Answer 27

Grantor/grantee system of indexing

Question 28

Method of identifying the boundaries of a parcel of real estate using reference points, distances, and angles

Answer 28

Metes and bounds

Question 29

Used to describe properties in residential, commercial, and industrial subdivisions

Answer 29

Lot and block system

Question 30

When a single individual or entity owns a fee or life estste in a real property, the type of ownership is? 1. Tenancy in common 2. Tenancy by the entirety 3. Absolute fee simple 4. Legal fees simple

Answer 30

1. Tenancy in common

Question 31

What gives an owner protection from any other titles to tbe property that are not recorded in the public record?

Answer 31

Recording the deed

Question 32

The four unities required to create a joint tenancy include which of the following? 1. Parties must acquire respective interests at the same time 2. parties must be legally married 3. Parties must be family members 4. Parties must have joint financial resources

Answer 32

1. . Parties must acquire respective interests at the same time