Who must have legal existence and be legally competent to convey title?

Study for the Louisiana Title Insurance Exam. Engage with flashcards and multiple choice questions. Hints and explanations guide your way. Prepare confidently for your certification!

In real estate transactions, the party who is transferring property ownership is referred to as the grantor. For a grantor to effectively convey title, they must possess legal existence and be legally competent. Legal existence means that the grantor is recognized as a lawful entity, whether an individual or a corporation, and legally competent refers to their mental capacity to enter into a contract.

If a grantor is not legally competent—due to age (for example, being a minor) or mental incapacity—they cannot make a binding conveyance of title. This ensures that all parties involved in the transaction are protected and that the transfer is legitimate and enforceable.

In contrast, while the grantee (the recipient of the title) must also be aware of the transaction and capable of receiving the title, only the grantor is obligated to have legal existence and competency to effectuate the transfer of ownership. A title holder, simply by holding a title, does not necessarily engage in the process of conveying title to another party, nor does an executor, whose role is specifically tied to administering estates rather than conveying titles outright.

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