Property Ownership
What is a 'trust' in the context of Delaware real estate ownership?
AA company that holds title insurance for property owners
BA fiduciary arrangement where a trustee holds legal title to property for the benefit of a beneficiary✓ Correct
CAn agreement between co-owners to manage property jointly
DA special designation for historically significant properties
Explanation
A trust is a legal arrangement where the trustor (settlor) transfers property to a trustee who holds and manages it for the benefit of named beneficiaries. Trusts are commonly used for estate planning, privacy in ownership, and asset protection.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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