Chapter 7: Ownership of Real Estate Flashcards
Describe different forms of ownership. Explain the differences between condos, co-ops and time shares.
Title
A parcel of real estate may be held by one person, of there may be two or more co-owners of the property.
Tenancy of Severalty
Title is held by one person (or entity) that person is to posses sole ownership.
Tenancy in Common
A form of co-ownership by which each owner holds an undivided interest in real property as if he or she were sole owner. Each individual owner has the right to partition. Tenants in common have no survivorship. .
Tenancy by the entirety
The joint ownership of property acquired by husband & wife during marriage. Upon the death of one spouse, the survivor becomes the owner of the property.
Joint Tenancy
Ownership of real estate between two or more parties who have been named in one conveyance specifically as joint tenants. Joint tenants have survivorship. Upon the death of a joint tenant, his or her interests pass to the the surviving tenants.
Tenancy at will
An estate that gives the lessee the right to possession until the estate is terminated by either party; the term of this estate is indefinite.
Tenancy at sufferance
A situation in which a tenant comes into possession of land by lawful title and keeps it afterward without any right at all.
Creating Joint Tenancies
Unity of time: All joint tenants must acquire their interests at the same time
Unity of Title: All must acquire their their interests by the same deed.
Unit of interest: All hold equal ownership interest.
Partnerships
An association of two or more people to carry on a business as co-owners and share the profits & losses.
Types of partnerships
General Partnership & limited parnerships.
General Partnership
All partners participate to some extent in the operation and management of the business. They may be held personally liable for the business’s losses and obligations, even beyond the amount of their initial investment.
Limited Partnership
Includes a general partner as well as limited partners. The business is run by the general partner or partners. The limited partners do not participate in the operations of the business. Limited partners are held liable for the business losses only to the extent of their initial investment.
Corporations
Is an artificial person or legal entity created under the laws of the state.
Condominium Ownership
Buyers receive a deed conveying fee simple ownership of two things, their living unit and a proportionate undivided interest in the common elements.
Cooperative Ownership
Title to the land and buildings is held by the corporation. Each purchaser of an apartment in the building receives stock in the corporation and a proprietary lease, which gives the purchaser the right to occupy his or her apartment.
