Forms of Ownership

Joint Tenancy: Describe the characteristics, including the right of survivorship, which means that when one joint tenant dies, their interest in the property automatically passes to the surviving joint tenant(s). Mention the four unities required for joint tenancy: unity of possession, interest, time, and title.

Tenancy in Common: Explain that unlike joint tenancy, there is no right of survivorship. Each tenant in common holds an individual part, which can be sold or passed on to heirs. Highlight that the shares do not have to be equal.

Tenancy by the Entirety: Discuss how this form of ownership is similar to joint tenancy but available only to married couples. Emphasize the protection it offers against creditors of one spouse.

Title Theory vs. Lien Theory

Title Theory: Clarify that under this theory, the mortgage lender holds the title to the property until the mortgage is paid in full. Outline the implications for borrowers and the foreclosure process in title theory states.

Lien Theory: Explain that in lien theory states, the borrower holds the title to the property, and the mortgage serves as a lien on the property. Discuss how this affects the rights of the borrower and the lender, especially in foreclosure situations.

Acquiring Title

General Overview: Introduce the concept of acquiring title as the legal process of becoming the owner of a property. Mention the common ways to acquire title, such as through purchase, inheritance, or gift.

Deeds: Discuss the role of deeds in transferring title, including the requirements for a valid deed and the different types of deeds (warranty, quitclaim, special warranty).

Recording: Explain the importance of recording deeds and other documents in the public record to protect ownership rights.

Common Title Defects and Their Resolution

Types of Defects: List common title defects, such as liens, encroachments, and errors in public records.

Resolution Methods: Detail methods for resolving title defects, including title searches, title insurance, and legal actions like quiet title suits.

Title Insurance: Dive deeper into the role of title insurance in protecting against title defects, explaining how it works and why it's a critical component of real estate transactions.