Chapter 4 Forms of real estate ownership Flashcards
One owner/ sole owner is cut off/severed from other owners
ownership in severalty
Tenancy in common, jointy tenancy, tenancy by the etnirety and community property are types of
co-ownership
Default mode of ownership. Undivided fractional interest. Universal right of possession. Only form of co-ownership with equal OR unequal ownership. Tenants presumed to own equal shares unless otherwise specified. Only co-ownership with willability.
Tenancy in common
Property ownership by two or more people, married or unmarried. Equal interest in property. right of survivorship. Tenants receive interest at same time on ONE deed. If there are 2 owners and one dies, this form of co-ownership is terminated
Joint Tenancy
Creating joint tenancy. If any of these aren’t true/implied/applied, the joint tenancy terminated
Possession, interest, time, title
Legal way to dissolve the relationship between co-owners of real estate when the parties to not voluntarily agree to its termination
Partition
Type of co-ownership reserved for married couples. Default mode for married couples. Like joint tenancy, but no partition. Owned like one unit. “marriage” owns the property.
Tenancy by the entirety
Real or personal property that was owned solely by either spouse before the marriage or purchased with separate funds from the marriage
Separate property
Device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party
Trust
Person who creates the trust
trustor
person benefiting from trust
beneficiary
a person who acts in confidence or trust and has a special legal relationship with the beneficiary
Fiduciary
Party who holds the legal title to the property and is entrusted with carrying out the trustor’s instructions regarding the purpose of the trust
trustee
These trsuts begin upon a person’s death
Living and testamentary trusts
trust created by agreement during the property’s owner lifetime
living trust
trust created by agreement established by will after owner’s death
testamentary trust
Real estate is the only asset of a
land trust
Association of two or more persons
partnership
all partners participate in the operation and management of the business and share FULL LIABILITY for business losses and obligations
general partnership
consists of one of more gneral partners. Not legally permitted to participate. “Silent partners”. Silent partners. Limited liability.
Limited partner
Legal entity. Created under the authority of the laws of the state from which it receives its charter. Managed/operated by board of directors. selected by owners- the shareholders.
Corporations
Type of corporate ownership. tax advantages, income flows directly to member(s).
LLC Limited Liability COmpany
“Big Corp” Double taxation (negative). majority shareholders actively manage the corporation
C-corp
Shareholders enjoy limited liability. 75 or fewer shareholders
S-corp
