When buying real estate, there is an actual exchange of real property. It is very important for real estate career people to understand the basics of title and transfer. Different states have different laws regarding the exact details. California Real Estate uses the Judicial system more, while other states tend to like trust deeds.

Title and Transfer
I you don’t read your title report, it may have errors and you’ll be signing something that isn’t accurate, making the inaccuracies legal.  Utah real estate agents can actually be held liable for errors that result in the preliminary title report.

When title is transferred, the title company checks the chain of title to make sure that none of the former parties on record by either deed or patent, have a vested interest in the property.

The worse title problem you can have is with ownership. Ownership is not quantifiable. There is no set dollar amount for vested ownership. People can always refuse to have an ownership interest released. Judgements can be paid off.

Most Common Types of Ownership
Husband and Wife – Joint Tenancy
When one spouse dies, ownership is automatically passed on to the survivor. There must be an equal share of ownership.

If there is no Joint Tenancy, the ownership needs to be past on somewhere.

Tenants in Common
Default Ownership status in Utah. Ownership is common, but there is no right to survivorship. Under Death laws this interest will be passed to heirs.
Can be any. Number of people. The percentage of ownership doesn’t matter.

For things like the Death Tax, it really matters which type of ownership you have. He distribution on death differs.

Other ways to hold title:
Partnerships
Corporations – By laws determine who signs.
LLC’s – Manager Needs to Sign

Capacity to Sign
Divorce – if both parties are still on title, both parties still need to say. The divorce decree needs to legally “convey” the property to the spouse who is going to keep the property.

Death and Types of Ownership
Joint Tenants – if both spouses sign the listing agreement, and one dies before closing, you can’t complete the transaction without court an probate. You’ll probably want to extend the listing. This may take a little while.

If the ownership is Tenants in Common, and one spouse dies, the surviving heirs from the universal probate code have to sign for the sale o the house to be completed.

Trusts cannot take title to a property. Only trustees can.

A minor, or incompetent person can have title of a property as joint tenants, but that minor cannot sign. Their parent doesn’t necessarily have the right on their behalf to sign either. I minor can technically stop a real estate deal from happening, but the legal guardian must sign on their behalf.

Voluntary Transfer
The Normal transaction where buyers and sellers exchange properties.

Involuntary Transfers
Foreclosure – non Judicial Foreclosure, trustee Sales. At the time the property was purchased the buyer agreed to allow the mortgage company to have th trust deed, which is essentially the right to foreclose. There are four potential involuntary transfers. They are:

• Imminent Domain
• Tax Sales
• Divorce Sales
• Adverse Possession

Types of Deeds
Warranty Deed – Guarantees that you have title to the property.

Special Warranty Deed – reduction of the Warranty, only guarantee the deed over the period of ownership. The Warrant Deed guarantees the property forever.

Quit Claim Deed
This deed simply says, if I have ownership in the property, then I transfer it all to you. It’s typically used to solve problems. To clean up the interest.