Course 1-2 Flashcards
Second chapters, (34 cards)
Estate Owenership in Severalty
Single party ownership
Co-Opwnership
Tenancy in common, joint tenancy, tenancy by entirety, community property. (MINNESOTA DOESNT RECOGNIZE TENENCY BY ENTIRETY OR COMMUNITY PROPERTY.
Living Trust
Lets trustor during life to convey title to a trustee for benefit of third party.
Land Trust (Deed in Trust)
Allows trustor to convey the fee estate to the trustee and to name himself or herself the beneficiary. The trust applies only to real property, not to personal property.
Tenancy in Common
AKA estate in common is the most common co owernship when the owners are not married.
Two or more owners Identical rights Interests individually owned Electable ownership shares No survivorship No unity of time
Two or More owners
Any number of people can be co tenants in a single property
Identical rights
Co tenants share an indivisible interest in the estate
Interests individually owned
All tenants in common have distinct and separable ownership of their respective interested. Co tenants may sell, encumber, or transfer their interests without hindrance.
Electable ownership shares
Tenants in common determine among themselves what share of the estate each party will own, basically different percentage buy ins.
No survivorship
A deceased co tenants estate passes by probate to the decedents heirs rather than back to the other co tenants
No unity of time
It is not necessary for tenants in common to acquire their interests at the same time. A new co tenant can walk in at anytime.
Joint Tenancy
Two or more persons collectively own a property as if the were a single person.
Unity of ownership
Equal ownership
Transfer of interest
Survivor-ship
Unity of ownership
Whereas tenants in common hold separate title to their individual interests, where joint tenants together hold a single whole title.
Equal ownership
Joint tenants own equal shares in the property, without exceptions.
Transfer of interest
A Joint tenant may transfer his interest in the property to an outside party, but only as a tenancy in common interest.
Three main forms of ownership?
Inseveralty- held by one
In co ownership - held by two or more
In Trust - Held by third party for the benefit of someone else
That two types of co ownership does MN recognize
Tenancy in common
Joint Tenancy.
What does a living trust do
Allows the trustor during his liftime to convey the title to a trustee for third party benefit.
What are the four unities needed to create a joint tenancy?
Unity of time
Unity of title
Unity of interest
Unity of possession
Binder
Recapitulates the property description, interest to be insured, names of insured, and exceptions to coverage.
Three Items not covered by a title insurance policy
Problems with the title that occur after the date the owner purchased the policy.
The penalties of the owner’s failure to pay for the property.
An unrecorded title defect that the owner knew about or allowed to occur.
What is a chain of title
The succession of property owners of record dating back to the original grant of title from the state to a private party.
What is an abstract of title?
A document that briefly summarizes the various activities that affect the ownership of a parcel of land
What does the job of an abstractor entail?
An abstractor must verify that the abstract is complete by reviewing recent certifications that the abstract is correct, checking for gaps in dates and certification numbers, and ensuring that a proper legal description appears with each entry.
