Ownership

Question 1

Ownership

Answer 1

May be individual. held by two or more owners (co owners or concurrent owners) or by business entities. The choice will determine the legal right to sell the property with or with the consent of others, the right to choose who will own the property, and the right to choose who will own the property after death

Question 2

Severalty

Answer 2

a type of ownership that involves sole ownership by a real or artificial person.

The last survivor in a joint tenancy takes severalty. If one parent sells his share, the new owner becomes a “tenant in common” with the other joint tenants.

Question 3

Co-ownership

Answer 3

concurrent ownership - involves two or more persons owning property and may take several forms

Question 4

Forms of Co Ownership

Answer 4

Tenancy in Common, Join Tenancy, Tenancy by the Entirety, Community property

Question 5

Tenancy in Common

Answer 5

1. Each holds an undivided interest in the whole. Although an owner may hold 1/3 interest, it is impossible to distinguish physically what 3rd they own. 2. Each owner fractional interest is held as though he was the sole owner (separate titles).

Question 6

Partition

Question 7

Tenancy in Common Cont’d

Answer 7

3. Interest may be disposed of without the consent of the other co-owners. 4. No requirement to have equal percentages of ownership 5. Needs no special wording to create

Question 8

Joint Tenancy

Answer 8

1. All join tenants hold an undivided interest in the entire property. 2. May be created in SC by deed or by will (requires special wording) 3. One title exists (with each owners name on it.

Question 9

Join Tenancy Cont’d

Answer 9

4. Death of a co-owner does not destroy the unit because the remaining co owners receive the interest of the deceased by the right of “survivorship”. 5. SC law does not permit a joint tenant to convey unless all joint tenants join in the conveyance. 6. Each owner interest must be equal

Question 10

PITT / The Four Tests of Unity

Answer 10

P: Unity of Possession, I: Unity of Interest, T: Unity of Time, T: Unity of Title

To determine if an ownership is a joint tenancy

Question 11

Unity of possession

Answer 11

All join tenants own undivided rights in the property

Question 12

Unity of Interest

Answer 12

all join tenants have equal ownership and interest

Question 13

Unity of Time

Answer 13

all join tenants acquired interest at the same time

Question 14

Unity of Title

Answer 14

all joint tenants have on title with all their names on it

Question 15

Partition Suit

Answer 15

A remedy available to an interested party or parties when the parties do not voluntarily agree to terminate the co-ownership. It takes place through court procedures

Question 16

Tenancy by the entirety

Answer 16

special form of joint tenancy between husband and wife - not recognized in SC

Question 17

Community Property

Answer 17

Property gained through a marriage. SC does not have this.

Question 18

Partnership

Answer 18

involve an association of two or more persons to carry on a business as co-owners and share the profits and losses. Partners are only taxed one

Question 19

Uniform Partnership Act

Answer 19

provides that a partnership may own land or real estate

Question 20

Types of partnership

Answer 20

General & Limited

Question 21

General Partnership

Answer 21

all partners participate to some extent in the operation or management and may be held personally liable for the debts incurred by the other general partners

Question 22

Limited Partnership

Answer 22

includes general and limited or silent partners who do no participate and can be held liable only to the extent of their investment

Question 23

Other Business Entities

Answer 23

C Corp, S Corp, LLC, Syndicates, Joint Ventures

Question 24

C Corporation

Answer 24

considered an artificial person, or legal entity and is owned by the shareholders who acquire by the purchase of stock. Stockholders are only liable to the amount of their investment. The ownership is in severalty and the Board of Directors hires the management. Disadvantage: profits are taxable at corporate and personal income levels. It exists until it is formally dissolved.

Question 25

S Corporation

Answer 25

treated more like a partnership for tax purposes. It operates in corporate form but there is no corporate tax. It avoids the classic problem of double taxation inherent in a C corporation. Maximum of 100 shareholders and they enjoy limited personal liability.

Question 26

Limited Liability Company

Answer 26

alternative, hybrid business entity with combined characteristics and benefits of both limited partnerships and S corporations. They do not have perpetual existence and the principal governing document is its operating agreement

Question 27

Syndicate