Forms of Real Estate Ownership Flashcards
Ownership in ___ occurs when property is owned by one individual or corporation
Severalty
The ___ owner has sole rights to ownership, and sole discretion to sell, will lease, or otherwise transfer part or all of the ownership rights to another person or entity.
Severalty
In Illinois, when either a husband or a wife owns a property in severalty, what is required by lenders, grantees, and title insurers in order to release any potential homestead rights?
Signature of both spouses
When title to one parcel of real estate is held by two or more individuals, those parties are called ___.
Co-owners
Concurrent owners is another term for ___.
Co-owners
Illinois recognizes co-ownership and most traditional forms of it except for ___ property
Community
Illinois is a ___ property state
Marital
A form of co-ownership by which each owner holds an undivided fractional interest in real property as if they were sole owner
Tenancy in Common
___ is a form of co-ownership where each individual owner has the right to partition.
Tenancy in Common
Unlike joint tenants, tenants in common have right of ___.
Inheritance
In a tenancy in common, each tenant holds a(n) ___ in the property.
Undivided fractional interest
Co-owners in a tenancy in common have ___ of possession.
Unity
In reference to tenancy in common, ___ means that co-owners are entitled to possession of the property.
unity of possession
If no fractions are stated in a deed when creating a tenancy in common, the tenants are presumed to hold ___.
Equal shares
If five people hold title to a tenancy in common, but no fractions have been specified on the deed, how much interest does each individual own?
1/5
In addition to co-ownership, tenants in common hold their ownership interests in ___.
Severalty
In order for a tenant in common to transfer their interest in a property, is consent needed from other co-owners?
No
In Illinois, the law presumes that two or more owners hold title as ___ if the deed does not state specifically how title is to be held.
Tenants in Common
___ is ownership of real estate between two or more parties who have been named in one conveyance as this.
Joint tenancy
Upon the death of a joint tenant, the decendent’s interest passes…
To the surviving joint tenant or tenants by right of survivorship
What distinguishes a joint tenancy from a tenancy in common?
Unity of interest
In joint tenancy, title is held as though all owners constitute ___.
One unit
___ includes the right of survivorship
Joint tenant
The right by which upon the death of a joint tenant, the decedent’s interest passes to the surviving joint tenant or tenants by this right.
Right of Survivorship
Because of right of survivorship, a(n) ___ has no effect on the transfer of property.
Will
The last survivor of a joint tenancy will take the title in ___.
severalty
A joint tenancy can be created only in which 2 ways?
1) Conveying a deed
2) Giving the property by will
How long does joint tenancy continue?
Until only one owner remains
Joint tennancy cannot be ___ or created by ___.
Implied or created by operation of law
To create a joint tenancy, the deed must specifically state that the parties are…
Identified as joint tenants
The four unities required to create joint tenancy are…
1) Possession
2) Interest
3) Time
4) Title
Unity of ___ means that all joint tenants hold an undivided right to hold the property
Possession
Unity of ___ means that all joint tenants hold equal ownership in the property
Interest
Unity of ___ means that all joint tenants acquire their interests at the same time
Time
Unity of ___ means that all joint tenants acquire their interests by the same deed
Title
Illinois allows a sole owner to execute a deed to herself and others “as ___ and not ___” in order to create a valid joint tenancy.
As joint tenants
Not tenants in common
A joint tenancy is destroyed when ___ is terminated
Any one of the four unities of joint tenancy
Sarah, Bob, and Bill hold title to a ranch as joint tenants. Sarah sells her interest to Dan. Dan now owns a(n) ___ in the ranch.
Fractional interest
Sarah, Bob, and Bill hold title to a ranch as joint tenants. Sarah sells her interest to Dan. Dan is a(n) ___ with Bob and Bill.
tenant in common
Sarah, Bob, and Bill hold title to a ranch as joint tenants. Sarah sells her interest to Dan. Bob and bill are ___.
Joint tenants
Sarah, Bob, and Bill hold title to a ranch as joint tenants. Sarah sells her interest to Dan. How much interest is Dan presumed to have?
1/3
Minonk State Bank v. Gassman held that a joint tenant may unilaterally sever the tenancy by conveying interest to herself as a(n) ___, even without the consent of her co-owners.
Tenant in common
In Illinois, any owner holding property in a joint tenancy may elect at any time to become a(n) ___.
Tenant in Common
Any joint tenancy may be ___ by mutual agreement of all cotenants, by conveyance to third parties, or through a partition suit in court
Severed
Co-owners who wish to terminate their co-ownership may file an action in court called a(n) ___ suit.
Partition
___ is a legal way to dissolve the relationship when parties in co-ownership do not agree voluntarily to its termination
Partition
In a partition suit, if the court determines that the land cannot be physically divided into separate parcels without destroying it’s value, the court will order the real estate ___.
sold
How are proceeds of a sale divided among co-owners following a partition suit?
According to their fractional interests
In Illinois, partition suits are filed by one or more of the owners in the ___ court of the ___ where the parcel is located.
Circuit court of the county
In Illinois, who sets the value of property in a partition suit?
Commissioner
Some states including Illinpis allow spouses to use a special form of co-ownership called ___ on their personal residence
Tenancy by entirety
___ is the spousal joint ownership of the principal residence acquired during marriage.
Tenancy by the entirety
The term ___ refers to the fact that the owners are considered one indivisible unit, such as a married couple.
Entirety
Spouses who are tenants by the entirety have rights of ___.
Survivorship
If a married couple owns property by the entirety, a lawsuit against one spouse will not result in a(n) ___ against the house.
Lien
A married couple owning property by the entirety would be eligible for ___ protection in the event of a judgment against either spouse.
Homestead
To create a tenancy by the entirety in Illinois, the deed must indicate that the property is to be owned…
“Not as joint tenants or tenants in common, but as tenants by the entirety”
In what 4 ways may a tenancy by the entirety be terminated?
1) Judgment sale
2) death
3) agreement
4) divorce
If a tenancy by the entirety is terminated by the death of a spouse, the surviving spouse becomes the owner ___.
in severalty
If a tenancy by the entirety is terminated by mutual agreement, both parties become ___.
tenants in common
If a tenancy by the entirety is terminated by divorce, both parties become ___
tenants in common
Community property laws recognize what 2 kinds of property?
1) Separate
2) Community
___ property is real or personal property that was owned solely by either spouse before the marriage.
Separate
___ property includes property acquired by gift or inheritance to one spouse during marriage.
Separate
___ property includes any property purchased with separate funds while married
Separate
___ property consists of real and personal property acquired by either spouse while married.
Community
Any conveyance or encumbrance of community property requires the signatures of…
both spouses
When one spouse dies, how much interest does the surviving spouse automatically own of the community property?
1/2
If one spouse dies, the surviving spouse automatically owns 1/2 of the community property. What happens to the other half?
It is distributed according to the deceased spouse’s will
In Illinois, ___ property is all property acquired after the date of marriage for the duration of the marriage, except by gift or will.
Marital
Is Illinois a community property state?
No
In the event of a divorce, how is marital property divided?
between the two parties
In Illinois, ___ property is property that was acquired before the marriage or by gift or inheritance at any time even during the marriage.
Nonmarital
If nonmarital property is commingled with marital property, the mixed property is presumed to be ___ property.
Marital
The Illinois Marriage and Dissolution of Marriage Act gives courts flexibility in determining the divison of ___.
marital property
In this form of co-ownership, each tenant holds an undivided fractional interest in held property
Tenancy in common
In this form of co-ownership, each tenant can convey or devise his or her interest in the property, but not the entire interest
Tenancy in Common
Unity of ownership in property held refers to what form of co-ownership?
Joint tenancy
___ is created by intentional act, unities of possession, interest, time, and title
Joint tenancy
This form of co-ownership includes the right of survivorship and cannot be conveyed to heirs.
Joint tenancy
In this form of co-ownership, a married couple has equal undivided interest in their personal residence
Tenancy by the Entirety
This form of co-ownership includes right of survivorship, and is conveyed by a deed signed by both party. One party cannot convey 1/2 interest.
Tenancy by the entirety
Who owns the real estate in a cooperative?
Cooperative corporation (tenants association)
Condominium units are ___ property
real
