Module 5 Vocab Flashcards
remaining condominium real estate outside of the individual units. (ex: community buildings, swimming pools, lobby, elevators, underground garage)
Common Elements
Type of ownership where the owner holds a fee simple title to an individual unit. Each unit has its own legal description. Each unit receives its own tax statement. An individual unit can be owned in a number of ownership forms such as tenancy in common or joint tenancy as permitted by state laws. The owners also hold an undivided interest in the common elements. The style of the building is not a determining factor of this type of ownership.
Condominium Ownership
A type of ownership where a corporation owns the real estate and offers shares of stock to prospective tenants. Apartment price equals the stock price. The purchaser becomes a shareholder in the corporation through stock ownership. The stock is personal property and the tenants do not own real estate.
cooperative ownership
A form of ownership where property is held by two or more individuals and is categorized into four types.
- tenancy in common
- joint tenancy
- tenancy by the entirety
- community property
All 4 operate the same during the lifetime of the owners but they differ when the property is conveyed or one of the owners dies.
co-ownership (aka concurrent ownership)
A type of co-ownership where the owners have the right of survivorship. When a tenant dies under joint tenancy, the interests are passed to the other surviving tenant and not to the heirs or according to a will. Death results in one less owner. The last surviving tenant has all the ownership interests and it becomes an ownership in severalty. Need to write specific language into a deed for this. Termination of this ownership can be accomplished by agreement, partition, or severance. If one owner sells their interest, the new owner has a fractional interest as a tenant in common with the original owners having their remaining undivided interest.
joint tenancy
The sole ownership by an individual or single entity. No restrictions on how the property is transferred (sold) to another party. Can be owned by a corporation which conducts business as if was a single person.
ownership in severalty
a type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development. Goal to provide more efficient use of land with a combination of higher dwelling density with a greater amount of open spaces.
planned unit development (PUD)
a corporation or trust that combines the capital of many investors to acquire or provide financing for all forms of real property. It serves much like a mutual fund for real property. Its shares are freely traded, often on a major stock exchange. To qualify for favorable tax treatment, 90% of the taxable income held must be distributed among its shareholders, who must number at least 100 investors; no fewer than five investors can own more than 50% of the value during the last half of each taxable year. It has sole ownership of the properties the entity possesses and it is only taxed on its retained earnings.
Real Estate Investment Trust (REIT)
Development that seeks to meet the needs of the present without compromising the ability of future generations to meet their needs.
Sustainable development
A private or public partnership (2 or more people or firms) that pools funds for the acquisition and development of real estate projects or other business ventures. Can be a partnership, Limited partnership, corporation, or a REIT. A ____ is not a recognized legal entity. It’s also not a form of ownership but can be organized in ways to make it fall under ownership of severalty or just as easily under co-ownership.
syndication
Type of co-ownership where each owner possesses an undivided fractional interest in the property held. The ownership interest is divided and co-owners are entitled to the possession of the whole property. Usually assumed to be equally divided among owners unless otherwise specified in the deed. Each owner can sell, mortgage, or transfer this interest without the consent of the other co-owners as long as they don’t infringe on the rights and interests of the other co-owners. Upon the death of an owner, the undivided interest passes in accordance to the will. Common form of ownership with business partnerships and syndicates. If the title to real estate is conveyed to two people and the deed doesn’t specify the form of tenancy, it’s assumed to be this type unless husband and wife.
tenancy in common
a unique form of ownership between married couples where each spouse has an equal, undivided interest in the property. Husband and wife have rights of survivorship. Upon the death of one spouse, the title automatically transfers to the surviving spouse, creating an estate in severalty. This avoids probate for the surviving spouse. To convey title, signatures from both spouses are required.
tenancy by the entirety
A type of ownership that typically involves a resort property that allows each owner the right to use the facilities for a specific period of time. Fee simple interest in condominium ownership with accompanying rights. The owner can mortgage, lease, sell, or bequeath the rights.
timeshare ownership
Real estate can be transferred to another person (fiduciary) to hold or manage for the benefit of a 3rd party. The beneficiary receives any proceeds that come from the property less the operating expenses of maintaining the ____. The income can be for the lifetime of the beneficiary or for a specified period or event.
trusts
In a trust, the person who conveys the title is called the ___
trustor
