5. How Home Ownership is Held Flashcards
Involves ownership of real estate by one individual or entity. The soul or a single owner is “severed” or “set apart” from all others. The advantage of this ownership is total control of the property. The disadvantage is total responsibility.
Example: Our house.
Estate in Severalty
Property held by two or more unmarried owners.
co–ownership
Ownership of real estate by two or more entities and undivided interest. All co-owners own the property in undivided shares.
Example: three kids inherit 300 acres of land. They each on one third interest in the land not 100 acres each.
See Partition.
tenancy in common
Type of ownership by more than one, that includes the right of survivorship.
joint tenancy
A concept of Spanish law where marriage is regarded as a partnership, rather than husband and wife becoming one as an English law. Under these property laws, most property acquired during the marriage is owned equally by both spouses and cannot be conveyed or sold without the signature of both parties.
Property acquired before marriage is separate, as is Inherited property and property purchased with inherited funds.
Texas is one in 9 states that adhere to this concept.
community property
An entity created for the benefit of another.
trusts
A venture that is owned by one individual And the owner has total control of the business. The potential downside of this form of ownership is that the owner also has full liability for the financial and personal obligations of the business.
Can have employees but must only have one owner.
sole proprietorships
A business entity that can be created with a simple written or oral agreement.
Must have one or more General partners.
partnership
A distinct legal entity, with the right to own real estate and other assets.
comprised of three components:
- shareholders who are owners of the corporation
- a board of directors elected by the shareholders who represent the interests of the shareholders
- corporate officers who are responsible for the overall management of the operation of the business
corporate ownership
Property acquired before marriage is separate, as is Inherited property and property purchased with inherited funds.
Separate Property
Responsible for the day-to-day operations of the business and has full liability.
General Partnership
This Partners liability is limited to the amount he or she invested in the partnership. They have no involvement in the day-to-day operation of the business, and are the investors in the venture.
Limited Partnership
When a group of individuals joins together for a single business venture. They will combine their funds and talents to carry out one project, and when the project Adventure is complete, they will dissolve as a group.
These Partnerships often consists of a developer who provides development expertise and a lender that provides the funding for the project.
Joint Venture
When two or more parties join together to create and operate a real estate investment.
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