Forms Of Ownership Flashcards
Who decides how title to real estate will be held?
The grantee or buyer decides. The seller decides the type of estate transferred.
What are the primary differences between tenancy in severalty and co-ownership?
The primary difference is the number of owners—one vs. two or more. Secondarily, the treatment of the estate on the death of an owner. In a severalty, the estate passes to heirs by probate. In a co-ownership, the estate may pass to heirs (tenancy in common) or to surviving co-owners (joint tenancy, tenancy by the entireties, tenancy in partnership) or to a combination (community property).
What are the primary differences between tenancy in common and joint tenancy?
Title– only one title in a joint tenancy, multiple titles in tenancy in common; ownership share– equal shares in joint tenancy, electable in tenancy in common; transferability– tenant in common may sell, encumber, etc., his or her share, but joint tenant’s interest becomes a tenancy in common interest if sold; survivorship– joint tenant’s interest goes to other joint tenants on death, but tenant in common’s interest goes to heirs; creation– joint tenancy requires the four unities, otherwise a tenancy in common results.
What are the primary differences between tenancy by the entireties and joint tenancy?
Tenancy by the entireties requires co-owners to be married; tenancy by the entireties can have only two owners; a tenant by the entireties cannot convey his or her interest separately to an outside party.
What are some of the apparent advantages of a land trust as a way of owning property?
Anonymity; ease of transfer; ease of use as collateral; potential benefits in treatment of estate on death of beneficiary (grantor).
What are the primary differences between a condominium and a cooperative as forms of ownership?
Condo owner actually owns real property– airspace and share in common elements– while co-op owner owns shares in a corporation and proprietary lease; condo unit can be transferred, encumbered or foreclosed as an entity, while co-op interest cannot be so handled, but only as an interest in the corporation; entire property is endangered by default of co-op shareholder, but only individual unit is endangered by default of a condo owner.
Describe the main differences between deeded timeshare ownership and vacation interval ownership as forms of ownership.
The deeded timeshare owner owns real property; the interval owner owns personal property; the deeded owner acquires the rights to use (a unit at a specific time), rent, sell, exchange or bequeath the interest; the interval owner acquires a right-to-use (no particular unit, at a specific time) and may have other rights to sell, exchange, etc., if allowed by the resort owner.
