Lesson 2 Part 2- Taking and Transferring Title Flashcards
1
Q
7 Ways to take Title of Realty
A
- Severalty
- Joint Tenants
- Tenants in Common
- Tenants in Entirety
- Community Property
- Trust
- Legal Entity
2
Q
Sevaralty
A
One person taking title
3
Q
Joint Tenants
A
- “Must be equal (2 or more)”
- May or may not be married
- “Right of Survivorship (CANNOT WILL)”
- “Possession, Interest, Title, and Time (PITT) has to occur simultaneously”
- Can convey title without other owner’s permission
- If only one joint tenant sells, new owner becomes tenant in common with joint tenants
4
Q
Tenants in Common
A
- “May be unequal interest (2 or more)”
- May or may not be married
- “No right of survivorship (CAN WILL)”
- PITT can occur anytime
- Can convey title without other owner’s permission
5
Q
Tenants in Entirety
A
- “Must be married”
- Right of survivorship ( CANNOT WILL)
- “Cannot partition or convey real property without both signatures”
6
Q
Community Property
A
- Equal percentages after marriage
- Must be married
- No right of survivorship (CAN WILL THEIR PORTION)
- Realty acquired before marriage can be kept seperate as long as there is no commingling of funds
- Upon death of one spouse, survivor is entitled to their half of realty acquired during a marriage
- “Can have seperate realty during marriage by gift, will or inheritance”
- If you co-mingle your separate property, spouse can get part of it as it will become Community Property
7
Q
Trust
A
- Trustor - sets up the trust and makes all the rules.
- Beneficiary - benefits
- Trustee - carries out the instructions of the trust.
- Sole or co-owners
- Upon death or incompetence, trustee takes over
- Upon death, title to the realty passes without probate and trustee takes over
- Revocable living trust is revocable during the life of the grantor
8
Q
Legal Entity
A
?
9
Q
4 ways of taking title on realty as a business
A
- General Partnership
- Limited Partnership
- Corporation
- LLC
10
Q
General Partnership
A
- liable personally and as a group (must be 2 or more)
- all partners will participate in making decisions
- all share unlimited liability for their actions.
11
Q
Limited Partnership
A
- One or more general partners
- General partners completely liable and make all the decisions
- Limited partners only liable up to original investment. “Silent Partner”
12
Q
Corporation
A
- Title taken in severalty under the name of corporation
- Percent of ownership determined by shares of stocks
- Stockholders liability usually limited to investment
- Subject to double taxation
- It is possible to have a corporation of only one person
13
Q
Limited Liability Company (LLC)
A
Limited liability within the organization.
- Your name as company
- 1 share holder to receive commissions through
14
Q
Cooperative
A
- Title held in form of shares of stock in the corporation
- Owners of the realty are each stockholders
- Each has a proprietary lease
- Taxes are against the corporation
- *Never receive a deed in a co-op
15
Q
Condominum
A
- Owner of the realty holds to titles: one for the air space inside the condo and one for the common area;s of development with other condo owners
- Each party responsible for their taxes etc.
- Limited Common 1 or a few (building has 6 units and only those 6 have BBQ access)
- need your own insurance as owner
