Ownership Flashcards
Publicly owned real estate
held by federal, state or local gov’t entities for such things as schools, roads, parks, public housing, military installations and gov’t office bldgs
Privately owned real estate
may be held by one individual or entity or by more than one.
Severalty Ownership
Also called: Tenancy in Severalty/Sole ownership: when an estate is owned by one person or by a single legal entity (corporation) “severed” from anyone else; sometimes a spouses signature is required to transfer property so as to waive dower, curtesy, community property rights. Before a corp. can buy, sell, or lease real estate, the directors must adopt a resolution authorizing certain officers to act. Any docs signed by auth. officers must be accompanied by the resolution and the corp seal
Concurrent Ownership
When 2 or more ppl simultaneously own rights in the same land, they are said to be co-owners or concurrent owners. Can be in the form of tenancy in common, joint tenancy, tenancy by entirety, community property, tenancy in partnership, a trust, a condominium or cooperative
Tenancy in Common
form of concurrent ownership that imposes the fewest restrictions on the co-owners. Each holds separate title (with separate estate) to an undivided interest in the property. Does not own a specific portion of the physical property– only a specific interest in the property as a whole.
Each co-owner can sell, mortgage, will or otherwise transfer their specific share w/out the consent of the other owners, as long as their rights are not affected.
Created in a deed or will, but can also be created by court or statutory action. “Tenants in common” if no indication of how title is to be held, a tenancy in common is presumed.
Interests to not have to be equal. The deed or will specifies the percentage each co-tenant owns. if the deed or will is silent, there is an assumption the share are equal. Shares of the co-tenants do not have to be acquired at the same time or by the same deed/will.
The shares of tenants in common are inheritable.
Joint Tenancy
co-tenants jointly own a single estate. Only 1 title regardless of how many joint tenants there are. Upon death of one joint tenant, interest in property passes to the remaining joint tenants, the “survivors.” Cannot be inherited nor does it become a part of the deceased co-owners estate. RIGHT of SURVIORSHIP.
Two or more corporations can be co-owners of property as tenants in common, but never joint tenants. A corp. does not have a natural life.
Created through a deed or will and document must state this intention very clearly/specifically. Never presumed or implied. Most states require “unities” to be present.
Unities in Joint Tenancy (PITT)
Possession: each joint tenant has an undivided interest in the property as a whole–not a particular portion of it. Unity of possession is the only unity shared by both tenants in common and joint tenants.
Interest: equal interest, same type of freehold interest.
Time: all joint tenants must acquire their interests at the same time. Adding a new joint tenant later would require forming a new joint tenancy.
Title: joint tenant can sell, lease, or mortgage a share w/out permission, signature, or knowledge of the others (unless restricted by a written agreement among all joint tenants). It cant be willed – only sold, mortgaged or leased. When a share is sold the joint tenancy is ended in respect to that share. If the joint tenancy is held btw just two ppl and any of the required “unities” is destroyed, joint tenancy will terminate.
Joint Tenancy can also end if one co-owners interest is sold to satisfy a judgement/mortgage lien. However, if the debtor dies before creditor obtains satisfaction– other joint tenants acquire the share free and clear and credit is out of luck. No obligation to pay debt unless court has issued an attachment or writ of execution.
“partition suit”
Partition Suit
if joint tenants want to divide property and claim a specific portion and an agreement cant be reached–one or more of the co-tenants (without the consents of the others) can file a partition suit in court. Court might divide up property— but usually not practical – so property is sold and proceeds are divided.
Tenancy by the Entirety
concurrent tenancy – based on old English common law principle that a husband and wife become one person and cannot own anything individually. Property ownership is indivisible with each spouse effectively owning the entire estate.
identical to a joint tenancy in that it requires unities and has survivorship.
Different in 3 ways: 1) only for husbands and wives, if they divorce—> tenants in common 2) neither spouse can sell, mortgage, or lease his interest w/out the consent of the other, both signatures required; neither can sue for partition while the marriage lasts 3) creditor cannot force sale or half of property to satisfy either spouses personal or business debts—> only if both are liable for the debt
**Georgia law does not recognize tenancy by the entirety
Community Property
applies only to husband and wife and only as long as long as they are legally married. Recognized by 9 states (not GA) – based on Spanish Law that treats married couples as equal partners. Concept provides each spouse with 1/2 interest in any property acquired during the marriage, regardless of which spouse holds legal title. Both spouses must sign docs.
Property acquired by either spouse before marriage or property acquired specifically by one spouse by gift or inheritance is not included (SEPERATE PROPERTY) … can be sold, mortgaged, leased w.out the consent of spouse.
Community property rights can be passed on to heirs by will, if no will… goes to surviving spouse. Divorce–>community property rights cease —> tenants in common
Tenancy in Partnership
1) general partnership
2) limited partnership
3) limited liability company
4) trusts
5) syndicates
6) condominium ownership
7) cooperative ownership
Partnership
association of 2 or more ppl who join forces for business purposes–either general or limited
General Partnership
(creation and operation of a general partnership by uniform partnership act-): allows partnership to own property, provide the partnership operates under a registered trade name. Each partner jointly and severally (individually) liable for the partnership obligations but creditors must first collect from the partnership before pursuing the individual partners. A partners is not liable for the personal financial obligations of other partners and the interest a partner has in the business cannot by sold by a creditor to satisfy a personal debt.
