Chapter 6 - Forms of Ownership Flashcards
Severalty Ownership
Real property that is owned by only one person. Sole ownership.
Community Property
Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse has equal rights of management, alienation and testamentary disposition of community property.
Joint Tenancy
Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.
Partition
A division of real or personal property or the proceeds therefrom among co-owners.
Right of Survivorship
The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.
Tenancy by the Entireties
Under certain state laws, ownership of property acquired by a husband and wife during marriage, which property is jointly and equally owned. Upon death of one spouse it becomes the property of the survivor.
Tenancy in Common
Co-ownership of property by two or more persons who each hold an undivided interest, without right of survivorship; interest need not be equal.
Beneficiary
The recipient of a gift of personal property by will.
Land Trust
A legal agreement where a trustee is appointed to maintain ownership of a piece of real property for the benefit of another party.
Living Trust
An agreement where the trustee holds the legal possession of an asset (e.g. real estate) that belongs to another person, the beneficiary, and it is created while the person is alive.
Testamentary Trust
A trust which arises upon the death of the testator, and which is specified in his or her will.
Trust
A legal relationship under which title to property is transferred to a person known as a trustee.
Trustee
A person who holds title to property for the benefit of another called a beneficiary.
Trustor
A person who conveys title to a trustee.
Partnership
An arrangement in which two or more individuals share the profits and liabilities of a business venture.
Corporation
An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it. A corporation is a creature of having certain powers and duties of a natural person. Being created by law, it may continue for any length of time the law prescribes.
Limited Liability Company (LLC)
A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.
Real Estate Syndicate
An organization of investors usually in the form of a limited partnership who have joined together for the purpose of pooling capital for the acquisition of real property interests.
Common Elements
Refers to the spaces in a building shared by residents of the building. These include lobbies, corridors, stairs, elevators, etc.
Condominium
An estate in real property wherein there is an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map or condominium plan.
Cooperative
An apartment building, owned by a corporation and in which tenancy in an apartment unit is obtained by purchase of shares of stock of the corporation and where the owner of such shares is entitled to occupy a specific apartment in the building.
Time-Share
A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, on an annual or some other periodic basis, for a specified period of time.
