Title Search - Vesting and Different Ways of Acquiring Title - Title Insurance - US Mortgage

 

Module 6 - Vesting

Vesting:

            The vesting is current owner status and manner of the property ownership.

Chain of Title:

            Chronological Way to transfer the property from one person to another person.

Example: X to Y, Y to Z & Z to A.

Different ways of acquiring title:

1. Severality or Sole and separate property:

It is the property which is owned prior to being married or acquired after marriage by gift, will, inheritance or by quit claim from the spouse.

Sole ownership may be described as ownership by “an individual” or other entity capable of acquiring title.

            One- and Only-person is owner of the Real Property in case of after marriage also.

2. Co-ownership:

Co-ownership is a kind of ownership where the ownership of the whole property is divided between two or more individuals.

Types of Co-ownership:

1.      Joint Tenancy

2.      Tenancy in Common

3.      Community Property/Tenancy by the Entirety

1. Joint Tenancy: (equal interest, single will or transfer, having a right of survivorship)

Joint tenancy is interest in real property that is owned by two or more persons, having equal interest in the property created by a single will or transfer, expressly declared to be a joint tenancy and having rights of survivorship.

Exception: The interest of one of the joint tenant in the property can be transferred to other parties in the event of his death, through a will which is created with the consent of the other joint tenants.

Rights of Survivorship: If any of the joint tenants dies, then automatically the interest of the deceased is shared equally between the surviving joint tenants.

The title is vested in the remaining joint tenants by recording of an Affidavit of Death of Joint Tenant.

2. Tenancy in Common: (not equal interest, different will or transfer, no right of survivorship)

It is an interest in real property that is owned by two or more persons, may or may not have equal interest, created through different wills or transfer, having no rights of survivorship.

And consent of other Co-owners is not required for any modification.

3. Community Property/ Tenants by the Entirety:

The property which is acquired other than separate property during a marriage or after marriage by either a husband or wife or both while residing in the community property state.

Community property is also called as “Marital Property” is recognized in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin but the law vary from state to state.

Each spouse owns one-half of the property, but neither one spouse may enter into any form of agreement to sell, or mortgage the property without the other spouse’s consent.

Other Ways of Acquiring Title:

1.      Corporation

2.      Partnership

3.      Trust

1. Corporation:

A corporation is a legal entity created under State Law, consisting of one or more shareholders, but regarded under law as having an existence and personality separate from such shareholders.

A corporation may hold title to real property in the name of Corporation.

2. Partnership:

A partnership is an association of two or more persons who can carry on business for profit as Co-owners.

A Partnership may hold title to real property in the name of Partnership.

3. Trust:

A legal entity created by a grantor for the benefit of designated beneficiaries.

The Trustee holds a fiduciary responsibility to manage the trust’s assets and income for the benefit of all beneficiaries.