Ch 8 Flashcards
Ownership in severalty
title held by one individual
- sole rights to ownership
- sole discretion to transfer part or all ownership rights to another person
- may be a ingle individual or an artificial person, such as a corporation
Co- ownership
- Tenancy in common
- Joint tenancy
- Tenancy by the entirety
- Community property
Tenancy in common
- Each tenant holds undivided fractional interest
- co-owners have unity of possession- right to occupy entire property
- each interest can be sold, conveyed, mortgaged, or transferred
- interest passes by will when a co-owner dies
Joint tenancy PITT
- Unity of possession- all JT have undivided right to possession
- interest- own equal interest
- time- all JT acquire their interest at the same time
- title- title is conveyed to all JT by the same document
ROS- upson death of JT interest passes along to other JT or tenants
Termination of JT
- death of all but one JT, who then owns the property in severalty
- conveyance of a JT interest, but only as to that interest
- partition- which can be brought to force division or sale of prop
Tenancy by the entirety
- only available to husband and wife
- title conveyed only by deed signed by both
- right of survivorship; survivor owner in severalty
Community property
prop acquired during marriage that is not separate property
- separate prop is prop owned by one spouse before marriage; or inheritance or gift or with proceeds of separate prop
- comm prop- requires the signatures of both spouses to be conveyed
- separate prop of one spouse requires only that spouse’s sig to be conveyed
- death of one spouse, the other owns one-half of community prop and other half is distributed according to deceased spouse’s will or state law
Condominium
- owner holds fee simple title to the airspace of a unit as well as an undivided share in remainder of the building and land, aka common elements
- common elements owned by condo unit owners as tenants in common
- condo administered by HOA that my decide to hire prop management firm
- unit owners have no right to partition common elements
- units may be mortgaged; default on payment does not affect other unit owners
- right of first refusal
Cooperative
title to the land and the building held by a corporation; which sells shares of stock to prospective tenants
- purchaser of stock becomes shareholder in corp and receives a proprietary lease to apartment for life of the corporation
- stock is owned as personal prop and not real estate
- lender may accept stock as collateral for financing, which expands the pool of potential owners
- IRS treats coop the same as houses or condos for tax purposes
Town house
a form of ownership in which houses share common vertical walls, titles to individual units include a fractional interest in common areas
time share
permits the sale of a leasehold interest ( time-share use) or deeded ownership ( time-share estate) that allows occupancy during a specific period of time, typically weekly
-ownership permits multiple purchasers to buy interest in real estate, a form of ownership most commonly found with resort property
Model Real Estate Time- Share Act
deals with time-share management and protections for purchasers of units
