Property Ownership
Under South Dakota law, a 'trust' used to hold real property involves which parties?
AThe grantor and grantee only
BThe trustor (creator), the trustee (legal title holder), and the beneficiary (equitable title holder)✓ Correct
CThe title company, the lender, and the buyer
DThe assessor and the property owner
Explanation
A trust involves three roles: the trustor (settlor/grantor) who creates the trust and transfers property into it; the trustee who holds legal title and manages the property; and the beneficiary who holds equitable title and benefits from the trust.
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Key Terms to Know
Deed
A 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.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
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