Commercial Modular Practice Test

When considering the relationship between a legal owner and a registered owner regarding the assignment of title, it is crucial to understand the distinct roles they play. The legal owner holds the actual title to the property and can execute transactions involving that title. However, if a legal owner chooses to assign or transfer title, it does not inherently impact the registered owner's interest unless there is a specific agreement or legal stipulation that ties the registered owner’s interest to the title.

This means the registered owner maintains their rights and interests in the property regardless of the legal owner’s action in assigning title. Therefore, it is accurate to state that the legal owner can assign title without affecting the registered owner’s interest, as the interests of the registered owner remain intact unless affected by separate legal provisions or agreements. Hence, the assertion is true.

Other options may suggest limitations based on state laws or conditions, which can introduce complexity but do not negate the principle that the registered owner’s interest typically remains unaffected by the legal owner's assignment of title in general terms.