Chapter 8 - Ownership Flashcards
What 3 ways can a Fee Simple estate be held in?
- Severalty
- Co-Ownership
- Trust
Severalty
Title is held by one individual single owner
Co-ownership
Title is held by two or more individuals
Trust
Third institution or individual holds title for the benefit of another
Tenancy (Tenants) in common
A fractional interest in a property. Each of the co-owners have unity of possession - they are entitled to possession of the whole property. Has the right of inheritance
Joint Tenancy
Cannot be inherited. It is a survivorship and ownership is equal. All the owners together, create one unit and have title.
A will has no effect on a deceased joint tenants property.
What are the four “unities” required to create a Joint Tenancy?
- Unity of possession - undivided possession of the property
- Unity of interest - deed conveys equal interests to all the parties
- Unity of time - deed is executed and delivered at one time
- Unity of title - title is acquired by one deed by all joint tenants.
Tenancy by the entirety
Allowed only between husband and wife. Each own an equal share.
Wisconsin Marital Property Act of 1986
Property acquired during their marriage in the state of Wi is owned equally.
Interest-bearing common trust account
A firm that holds client funds. It is a firm’s responsibility to deposit all real estate trust funds received by the firm or licensee associated with the firm in a real estate trust account within 48 hours.
Trust
an institution or instrument used to hold and be administered on behalf of another party.
Land Trusts
an agreement whereby the owner of real property where real estate is the only asset.
Listing Trust
a trust created while grantor is alive.
Testamentary Trust
A trust established by will after the owner’s death
Partnership
Business alliance of two or more individuals who carry on a business for profit as co-owners
General partnership
a Typical form of joint venture in which a general partner shares full liability, profits, losses and administration of operating.
Limited partnership
a business arrangement whereby the operation is administered by one or more general partner and funded by and large, by limited or silent partners.
Corporations
a legal entity registered with the state. Elects a board of directors to oversee operations and activities, through the corporation itself is its own separate entity.
Limited Liability Companies (LLC)
Form of ownership created for federal tax purposes with limited liability protections for its owners along with tax advantages associated with partnership
Condominium Ownership
Form of ownership and NOT a specific building type of property. The owner of each unit holds a fee simple title and sole ownership of that unit. Each owner has a share of the undivided interest in the rest of the building and land.
Cooperative ownership (co-op)
where a corporation holds title to the building or land and then offers shares of stock to multiple prospective residents in a multi-unit housing complex
Town House Ownership
attached home that is not considered to be a condominium.
