Question 88

Ernest holds a naked title.

A naked title refers to a title that is held without the accompanying rights to the property, other than the limited rights necessary to fulfill the terms of the trust. In this case, since Ernest is a third-party trustee, he possesses a naked title, enabling him to execute the trust deed while not having any ownership rights beyond what is stipulated.

A) skinny title

A skinny title is not a recognized term in property law and does not accurately describe any type of ownership or title held in a trust context. Therefore, this option is incorrect and irrelevant to the situation presented.

B) dirty title

A dirty title implies that there are issues or encumbrances affecting the ownership of the property, such as liens or disputes. Since the question specifies that Ernest holds a title to carry out the terms of the trust without any indication of complications, this option is incorrect.

C) clean title

A clean title indicates that the property is free from any liens or claims, granting full ownership rights to the titleholder. However, in this case, Ernest's role as a trustee means he does not possess full ownership rights, making this option incorrect as it does not match the nature of the title he holds.

D) naked title

A naked title is when a trustee holds the title without any beneficial interest in the property, merely allowing them to execute the trust's provisions. This accurately describes Ernest's position, making this option the correct answer.

Conclusion

Ernest holds a naked title, which is characterized by limited rights strictly necessary for fulfilling the terms of the trust deed. The other options, including skinny, dirty, and clean titles, do not accurately reflect the nature of the title held by a trustee or the specific context presented, thus confirming that D is the only correct choice.