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Intermediate1.5 hours16 terms

Declaration of Trust: Key Terms for REI

This collection offers a carefully curated list of key terms related to Declarations of Trust in real estate investment. It's designed to provide helpful definitions for commonly referenced concepts, supporting your learning without offering comprehensive legal advice or exhaustive coverage.

Term Collection

1

Real Estate Trust

A real estate trust is a legal arrangement where a property owner transfers title to a trustee, who holds and manages the property for the benefit of designated beneficiaries, offering advantages like privacy, asset protection, and streamlined estate planning.

Intermediate15-18 min
2

Title

Title in real estate refers to the legal right of ownership to a property, representing a bundle of rights that an owner possesses over their land and any structures on it.

Beginner13-14 min
3

Beneficial Ownership

Beneficial ownership refers to the ultimate natural person(s) who directly or indirectly own or control a company or legal entity, even if legal title is held by another entity. It's crucial for transparency and anti-money laundering efforts in real estate.

Intermediate6 min
4

Asset Protection

Asset protection involves legal strategies and structures designed to safeguard an individual's or entity's wealth from potential claims by creditors, lawsuits, and other liabilities, particularly crucial for real estate investors.

Intermediate15-18 min
5

Tenancy in Common

Tenancy in Common (TIC) is a form of co-ownership where two or more individuals hold distinct, undivided interests in a property, allowing for unequal ownership shares and independent transferability of each owner's portion.

Intermediate5 min
6

Trustee

A trustee is an individual or entity legally entrusted with managing assets or property for the benefit of another party (the beneficiary) under the terms of a trust agreement, upholding strict fiduciary duties.

Intermediate13-14 min
7

Beneficiary

A beneficiary is an individual, group, or entity designated to receive assets, property, or benefits from a will, trust, life insurance policy, or other legal instrument.

Intermediate14-15 min
8

Estate Planning

Estate planning is the process of arranging for the management and disposal of a person's assets, including real estate, during their life and after death, to minimize taxes and ensure wishes are met.

Intermediate15-18 min
9

Co-ownership Agreement

A Co-ownership Agreement is a legally binding contract outlining the rights, responsibilities, and obligations of multiple parties who jointly own a single real estate property.

Intermediate5 min
10

Bare Trust

A bare trust is a simple trust arrangement where the trustee holds legal title to an asset, but the beneficiary has absolute entitlement to both the asset and any income it generates, retaining full control over the asset's management and disposition.

Intermediate5-6 min
11

Property Title

Property title is the legal right of ownership to a piece of real estate, granting the owner the right to possess, use, and transfer the property. It is distinct from a deed, which is the physical document used to transfer title.

Beginner18-20 min
12

Nominee Owner

A nominee owner is an individual or entity that holds legal title to a property on behalf of another party, the beneficial owner, who retains all rights and responsibilities associated with ownership.

Intermediate5 min
13

Joint Tenancy with Right of Survivorship

Joint Tenancy with Right of Survivorship (JTWROS) is a form of property co-ownership where two or more individuals hold equal, undivided interests, and upon the death of one owner, their share automatically transfers to the surviving owner(s) without probate.

Intermediate15-18 min
14

Settlor

A settlor is the individual who creates a trust, transferring assets such as real estate into it and defining the terms for how those assets will be managed and distributed for the benefit of others.

Beginner2-3 min
15

Fiduciary Duty

Fiduciary duty is a legal and ethical obligation for a professional to act in the best interest of their client, prioritizing the client's needs above their own with utmost loyalty, care, and disclosure.

Intermediate14-17 min
16

Declaration of Trust

A Declaration of Trust is a legally binding document that formally acknowledges the beneficial ownership of a property, distinguishing it from the legal title holder. It clarifies the rights and responsibilities of all parties involved, particularly in co-ownership or nominee arrangements.

Intermediate8-9 min

Common Questions