7 Ownership Concepts

Question 0

Tenancy in Common

Answer 0

A form (easiest) of co-ownership between 2 or more persons with no right of survivorship. Undivided interest (regardless of percentage of ownership, owner has right to full use)

Question 1

Severalty

Answer 1

Taking ownership by one person or possibly one entity. One corporation would take ownership in severalty. This is the easiest form of ownership in transferring property.

Question 2

Partition suit

Answer 2

A legal way to dissolve the co-ownership if the parties can’t agree on how to do so themselves.

Question 3

Joint Tenancy

Answer 3

A form of co-ownership between 2 or more persons which include right of survivorship. Joint tenancy can only be created intentionally by the parties and the following 4 unities are required… possession, interest, time, title… PITT

Question 4

Tenancy by the Entirety

Answer 4

This type of ownership is for husband and wife with each having an equal, undivided interest in the property including right of survivorship. Upon death, the surviving spouse becomes the sole owner in severalty.

Question 5

Community Property

Answer 5

Acquired by husband and wife as equal partners in the property. (50/50) When one spouse dies, the remaining spouse retains 50% interest while the deceased half is divided according to his/her will. Property that is gifted to one spouse or acquired before marriage remains sole and separate.

Question 6

Community Property with Right of Survivorship

Answer 6

When one spouse dies, the other spouse acquires the deceased spouses 50% of the community property and there is no probate.

Question 7

Trust

Answer 7

Created by a legal document such as a will or deed of trust. This form of ownership involves 3 parties. Trustor, Trustee, Beneficiary.

Question 8

Living Trust

Answer 8

The trustor transfers the property to a trustee who manages the property and the beneficiary will be the one receiving the income or other benefits generated by the trust. Trustor and beneficiary can be the same person. Avoids probate. INTER VIVOS

Question 9

Testamentary Trust

Answer 9

Created upon the grantors death by a will.

Question 10

Real Estate Investment Trust

Answer 10

REIT - a group of at least 100 investors who transfer real estate to a trustee, who manages the property for the benefit of the investors. REIT shares sell like stock so they are treated as personal property ownership which allows for tax benefits.

Question 11

Condominiums

Answer 11

The owner will have a fee simple ownership in the unit consisting of the interior walls and becomes a tenant in common with all the other owners in all of the common areas. Each owner will pay taxes on their individual unit plus their share of the taxes on the common areas. AKA horizontal property act

Question 12

Cooperative

Answer 12

The owner rents the unit with a proprietary lease and owns shares of stock in the corporation which owns the building.

Question 13

Townhouse

Answer 13

The owner has complete ownership of the individual unit that is shared with a common wall and ownership in the land which includes surface, subsurface and air.

Question 14

Time Shares

Answer 14

The purchaser has a fee simple ownership of the real property for specified time frame each year. All the common expenses are prorated among all the owners. Many states require a person to have a real estate license to sell time share ownership.

Question 15

Corporation

Answer 15

A company or group of people authorized to act as a single entity and recognized as such in law. Managed by a board of directors which provide its shareholders with limited liability. Profits subject to double taxation.