Forms Of Real Estate Ownership Flashcards
Ownership in SEVERALTY
Occurs when property is owned by one individual, corporation, or other entity. “Cut off”, has sole rights to property and sole discretion to sell, will, lease, or otherwise transfer.
Co ownership
Title to parcel or real estate is held by two or more individuals. Aka concurrent owners.
Tenancy in common
More than one tenant that share ownership and hold undivided interest in the property. They have unity of possession.
Unity of possession
Each owner in a TIC is entitled to possession and use of the entire property, even though only holding a fractional ownership interest.
Joint tenancy
Differs from a TIC because of right of survivorship. Upon death of a joint tenant, the deceased’s interest transfers directly to the surviving joint tenant.
4 unites PITT
Partition
A legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination.
Tenancy by the entirety
Special form of co-ownership used in some states that allows a spouse to inherit the others ownership interest upon death.
Separate property
Real or personal property that was owned solely by either spouse before the marriage, Acquired by a gift, or inheritance, or purchase with separate funds during the marriage.
Community property
Consists of real and personal property acquired by either spouse during the marriage. Any conveyance or encumbrance of community property requires a signature of both spouses.
Trust
A device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.
Partnership
An association of two or more persons who carry on business for profit as co-owners
General partnership
All the parties participate in the operation and management of the business and share full liability for business losses and obligations
Limited partnership
Consisted of one or more general partners as well as limited partners. Limited partners are not legally permitted to participate and only can be held liable for business losses up to the amount invested.
Uniform partnership act
Created to provide for the continuation of business after à partner dies, withdraws, or goes bankrupt.
Corporation
A legal entity- and artificial person- created under the authority of the laws of the state from which it receives its charter. It is managed and operated by its board of directors picked out by the owners (the shareholders).
Limited Liability Company
LLC
Popular since 1980, members enjoy limited liability; income flows directly to member, taxed only once, flexible management structure.
Condominium ownership
Each unit is a separate parcel of real estate that is owned in fee simple and may be held by one or more persons in any type of ownership or tenancy recognized by state law.
Recurring fees
HOA fees
Paid by each owner to pay for the expenses of maintains and operating the condo building.
Assessments
Special payments required of unit owners to address some specific expense.
Cooperative
A corporation holds the title to the land and the building. It offers shares of stock to prospective tenants. Tenant becomes shareholder and receives a proprietary lease for life of corporation. Do not own real estate they own interest.
Time share
Permits multiple purchasers to buy relatively small interests in real estate, typically resort properties. Each purchaser receives the right to occupy the facilities for a certain period. It includes a real property interest in a specified unit for a particular period of the year.
PITT
Unity of POSSESSION
Unity of INTEREST
Unity of TIME
Unity of TITLE
