Absolute title: Difference between revisions

From CEOpedia | Management online
mNo edit summary
 
m (Text cleaning)
 
(6 intermediate revisions by 3 users not shown)
Line 1: Line 1:
{{infobox4
|list1=
<ul>
<li>[[Interest in possession trust]]</li>
<li>[[Absolute assignment]]</li>
<li>[[Grantor trust]]</li>
<li>[[Easement In Gross]]</li>
<li>[[Lien theory]]</li>
<li>[[Affirmative Covenant]]</li>
<li>[[Limited warranty deed]]</li>
<li>[[Purchase capital]]</li>
<li>[[Unencumbered property]]</li>
<li>[[Torrens title]]</li>
</ul>
}}
'''Absolute title''' is also known as '''perfect title'''. It is a title to a property that is free of any liens, judgments, attachments. The person that has absolute title possesses the unequivocal right of ownership<ref>Dixon, M., Lees, E. (2014) [https://books.google.pl/books?id=lHbfBQAAQBAJ&pg=PA191&dq=absolute+title&hl=pl&sa=X&ved=0ahUKEwix2pOykJvfAhXosIsKHTeYBJo4HhDoAQh0MAk#v=onepage&q=absolute%20title&f=false ''Q&A Land Law''] Routledge</ref>.
'''Absolute title''' is also known as '''perfect title'''. It is a title to a property that is free of any liens, judgments, attachments. The person that has absolute title possesses the unequivocal right of ownership<ref>Dixon, M., Lees, E. (2014) [https://books.google.pl/books?id=lHbfBQAAQBAJ&pg=PA191&dq=absolute+title&hl=pl&sa=X&ved=0ahUKEwix2pOykJvfAhXosIsKHTeYBJo4HhDoAQh0MAk#v=onepage&q=absolute%20title&f=false ''Q&A Land Law''] Routledge</ref>.


Line 32: Line 14:


==Ownership in real estate==
==Ownership in real estate==
Ownership in real estate brings with it a wide range of rights. When a person owns property in the form of ordinary remuneration, she has the highest and best property ownership form. Among the rights invested in a fee simple absolute owner are the right to sell, mortgage, give away, and otherwise encumber the property. Traditionally, there were two subclassifications of a simple '''absolute title'''. These include a simple fee to be determined and a simple fee on subordinate terms. There are two restrictions on the fee, a simple absolute title is based on limiting the use of real estate.
Ownership in real estate brings with it a wide range of rights. When a person owns property in the form of ordinary remuneration, she has the highest and best property ownership form. Among the rights invested in a fee simple absolute owner are the right to sell, mortgage, give away, and otherwise encumber the property. Traditionally, there were two subclassifications of a simple '''absolute title'''. These include a simple fee to be determined and a simple fee on subordinate terms. There are two restrictions on the fee, a simple absolute title is based on limiting the use of real estate.
In modern real estate practice, you rarely see them. A person can also receive a ''life estate'' in real property. A person who has a ''life estate'' has the [[right to use]] and enjoy the property, but only as long as she lives. After the death of the tenant, the title of ownership is automatically transferred to a predetermined person, referred to as a remainderman<ref>Neal, R. Bevans (2008). [https://books.google.pl/books?id=rch5Eq40DxUC&pg=PA40&dq=absolute+title&hl=pl&sa=X&ved=0ahUKEwjel7y9gJvfAhVMtIsKHTswCX0Q6AEIbDAJ#v=onepage&q=absolute%20title&f=false ''Real Estate and Property Law for Paralegals''] Aspen Publishers Online. (p. 39-40)</ref>.
In modern real estate practice, you rarely see them. A person can also receive a ''life estate'' in real property. A person who has a ''life estate'' has the [[right to use]] and enjoy the property, but only as long as she lives. After the death of the tenant, the title of ownership is automatically transferred to a predetermined person, referred to as a remainderman<ref>Neal, R. Bevans (2008). [https://books.google.pl/books?id=rch5Eq40DxUC&pg=PA40&dq=absolute+title&hl=pl&sa=X&ved=0ahUKEwjel7y9gJvfAhVMtIsKHTswCX0Q6AEIbDAJ#v=onepage&q=absolute%20title&f=false ''Real Estate and Property Law for Paralegals''] Aspen Publishers Online. (p. 39-40)</ref>.
==Examples of Absolute title==
* A deed to real estate that is free of any encumbrances, such as mortgages or liens, is an example of an absolute title.
* A vehicle title that is free of any liens or encumbrances is an example of an absolute title.
* A life [[insurance]] policy that has been fully paid for and is free from any liens is an example of an absolute title.
* An aircraft title that is free from any liens or encumbrances is an example of an absolute title.
* A boat title that is free of any liens or encumbrances is an example of an absolute title.
* A copyright [[certificate]] that is free from any liens or encumbrances is an example of an absolute title.
* An intellectual property patent that is free of any liens or encumbrances is an example of an absolute title.
==Advantages of Absolute title==
Absolute title has several advantages, including:
* An absolute title provides the owner with the highest level of ownership rights. This means that the owner of an absolute title has the right to sell, lease, rent, and transfer the property to another person without any restrictions.
* Having an absolute title also provides the owner with the right to secure a loan against the property. The owner can use the property as collateral and get a loan from the bank, which would otherwise not be possible if the title was not absolute.
* An absolute title also provides the owner with the right to bequeath the property, meaning they can give the property to someone else in case of their death. This means that the property will stay within the family and will not be subject to any legal or financial disputes.
* An absolute title also ensures that the owner has the right to use the property in any way they deem fit, without any restrictions from the [[government]] or other entities. This means that the owner can use the property for residential, commercial, or industrial use without any restrictions.
==Limitations of Absolute title==
Absolute title is the highest form of property ownership, but there are also some limitations to it. These limitations include:
* '''Taxes''': Property taxes must be paid on any property with an absolute title, as well as any associated fees and penalties.
* '''Mortgage''': Even if a property has an absolute title, a mortgage can still be taken out on the property, which could limit the owner’s rights.
* '''Local Laws''': Local laws and regulations can also limit the rights of an absolute title holder, such as zoning laws, building codes, and other restrictions.
* '''Condemnation''': Absolute title does not protect the owner from potential condemnation from the government or other entities.
* '''[[Environmental]] Laws''': Environmental laws can also limit the rights of an absolute title holder, such as restrictions on development or pollution.
* '''Liens''': Even with an absolute title, liens can be placed on the property for unpaid debts or other obligations.
==Other approaches related to Absolute title==
There are various other approaches to Absolute title which can be used to ensure the undisputed ownership of a property. These approaches are:
* '''Torrens Title''': Torrens title is a [[system]] of land registration used in many countries. It involves the maintenance of an official register which guarantees the title of the owner, and protects the owner from claims of ownership from other parties.
* '''Certificate of Title''': This is a document issued by a government or a court of law that serves as proof of ownership of a particular property. It is also known as a deed or title deed.
* '''Leasehold Title''': Leasehold title is used when a person or entity holds the right to use a property for a specific period of time, as determined by the lease agreement.
* '''Possessory Title''': This is a type of title that is based on the possession of a property. The title is not necessarily recognized by a court of law, but may be established by the fact that the possessor has held the property for a certain period of time.
* '''Beneficial Title''': Beneficial title is a type of title which is held by a person who is not the legal owner of a property, but who has an [[interest]] in it, such as a beneficiary of a trust.
In summary, Absolute title is a type of title to a property that is free of any liens, judgments, attachments, and guarantees the title of the owner. There are various other approaches to Absolute title, such as Torrens Title, Certificate of Title, Leasehold Title, Possessory Title, and Beneficial Title, that can be used to ensure the undisputed ownership of a property.
{{infobox5|list1={{i5link|a=[[Absolute assignment]]}} &mdash; {{i5link|a=[[Vesting order]]}} &mdash; {{i5link|a=[[Spendthrift clause]]}} &mdash; {{i5link|a=[[Lien theory]]}} &mdash; {{i5link|a=[[Limited warranty deed]]}} &mdash; {{i5link|a=[[Clear title]]}} &mdash; {{i5link|a=[[Equitable lien]]}} &mdash; {{i5link|a=[[Negative easement]]}} &mdash; {{i5link|a=[[Subrogation clause]]}} &mdash; {{i5link|a=[[CAM]]}} }}


==References==
==References==

Latest revision as of 16:08, 17 November 2023

Absolute title is also known as perfect title. It is a title to a property that is free of any liens, judgments, attachments. The person that has absolute title possesses the unequivocal right of ownership[1].

If you plan to buy real estate it is desirable to perform a title search in the specialized agency. That allows to find any problems regarding to the title. The most common problems are[2]:

  • remaining taxes,
  • a spouse that holds part of property,
  • mortgage.

The absolute title gives the owner additional rights[3]:

  • lease property
  • rent property
  • mortgage

Buying property without absolute title is risky and can lead to loss of money as well as the property[4].

Ownership in real estate

Ownership in real estate brings with it a wide range of rights. When a person owns property in the form of ordinary remuneration, she has the highest and best property ownership form. Among the rights invested in a fee simple absolute owner are the right to sell, mortgage, give away, and otherwise encumber the property. Traditionally, there were two subclassifications of a simple absolute title. These include a simple fee to be determined and a simple fee on subordinate terms. There are two restrictions on the fee, a simple absolute title is based on limiting the use of real estate. In modern real estate practice, you rarely see them. A person can also receive a life estate in real property. A person who has a life estate has the right to use and enjoy the property, but only as long as she lives. After the death of the tenant, the title of ownership is automatically transferred to a predetermined person, referred to as a remainderman[5].

Examples of Absolute title

  • A deed to real estate that is free of any encumbrances, such as mortgages or liens, is an example of an absolute title.
  • A vehicle title that is free of any liens or encumbrances is an example of an absolute title.
  • A life insurance policy that has been fully paid for and is free from any liens is an example of an absolute title.
  • An aircraft title that is free from any liens or encumbrances is an example of an absolute title.
  • A boat title that is free of any liens or encumbrances is an example of an absolute title.
  • A copyright certificate that is free from any liens or encumbrances is an example of an absolute title.
  • An intellectual property patent that is free of any liens or encumbrances is an example of an absolute title.

Advantages of Absolute title

Absolute title has several advantages, including:

  • An absolute title provides the owner with the highest level of ownership rights. This means that the owner of an absolute title has the right to sell, lease, rent, and transfer the property to another person without any restrictions.
  • Having an absolute title also provides the owner with the right to secure a loan against the property. The owner can use the property as collateral and get a loan from the bank, which would otherwise not be possible if the title was not absolute.
  • An absolute title also provides the owner with the right to bequeath the property, meaning they can give the property to someone else in case of their death. This means that the property will stay within the family and will not be subject to any legal or financial disputes.
  • An absolute title also ensures that the owner has the right to use the property in any way they deem fit, without any restrictions from the government or other entities. This means that the owner can use the property for residential, commercial, or industrial use without any restrictions.

Limitations of Absolute title

Absolute title is the highest form of property ownership, but there are also some limitations to it. These limitations include:

  • Taxes: Property taxes must be paid on any property with an absolute title, as well as any associated fees and penalties.
  • Mortgage: Even if a property has an absolute title, a mortgage can still be taken out on the property, which could limit the owner’s rights.
  • Local Laws: Local laws and regulations can also limit the rights of an absolute title holder, such as zoning laws, building codes, and other restrictions.
  • Condemnation: Absolute title does not protect the owner from potential condemnation from the government or other entities.
  • Environmental Laws: Environmental laws can also limit the rights of an absolute title holder, such as restrictions on development or pollution.
  • Liens: Even with an absolute title, liens can be placed on the property for unpaid debts or other obligations.

Other approaches related to Absolute title

There are various other approaches to Absolute title which can be used to ensure the undisputed ownership of a property. These approaches are:

  • Torrens Title: Torrens title is a system of land registration used in many countries. It involves the maintenance of an official register which guarantees the title of the owner, and protects the owner from claims of ownership from other parties.
  • Certificate of Title: This is a document issued by a government or a court of law that serves as proof of ownership of a particular property. It is also known as a deed or title deed.
  • Leasehold Title: Leasehold title is used when a person or entity holds the right to use a property for a specific period of time, as determined by the lease agreement.
  • Possessory Title: This is a type of title that is based on the possession of a property. The title is not necessarily recognized by a court of law, but may be established by the fact that the possessor has held the property for a certain period of time.
  • Beneficial Title: Beneficial title is a type of title which is held by a person who is not the legal owner of a property, but who has an interest in it, such as a beneficiary of a trust.

In summary, Absolute title is a type of title to a property that is free of any liens, judgments, attachments, and guarantees the title of the owner. There are various other approaches to Absolute title, such as Torrens Title, Certificate of Title, Leasehold Title, Possessory Title, and Beneficial Title, that can be used to ensure the undisputed ownership of a property.


Absolute title — recommended articles
Absolute assignment — Vesting order — Spendthrift clause — Lien theory — Limited warranty deed — Clear title — Equitable lien — Negative easement — Subrogation clause — CAM

References

Footnotes

  1. ↑ Dixon, M., Lees, E. (2014) Q&A Land Law Routledge
  2. ↑ Dixon, M., Lees, E. (2014) Q&A Land Law Routledge.
  3. ↑ Dixon, M., Lees, E. (2014) Q&A Land Law Routledge
  4. ↑ Dixon, M., Lees, E. (2014) Q&A Land Law Routledge
  5. ↑ Neal, R. Bevans (2008). Real Estate and Property Law for Paralegals Aspen Publishers Online. (p. 39-40)

Author: Anna Mrajca

Retrieved from "https://ceopedia.org/index.php?title=Absolute_title&oldid=88980"