Ownership Flashcards
What are the three main forms of ownership?
In severalty – Held by only one owner
In co-ownership – Held by two or more people
In trust – Held by a third party for the benefit of someone else
What three types of co-ownership does Texas recognize?
Tenancy in common
Joint tenancy
Community property
What does a living trust do?
Allows the trustor, during his or her lifetime, to convey title to a trustee for the benefit of a third party
What are the four unities needed to create a joint tenancy?
Unity of time
Unity of title
Unity of interest
Unity of possession
What happens to community property upon the death of a spouse?
Half of the deceased’s community property passes to the surviving spouse, and the other half passes to the decedent’s heirs.
How do closely held corporations avoid considerable corporate taxation?
By not showing a profit
What is the liability for limited partners?
They are liable only to the extent of their investment.
Identify at least four ways that a business can be organized?
Sole proprietorship Partnership Joint venture Corporation Limited Liability company Syndicate Real estate investment trust
What form of ownership is a condominium?
A condominium is a hybrid form of ownership which combines ownership of a fee simple interest in the airspace within a unit with ownership of an undivided share, as a tenant in common, of the entire property’s common elements.
In most states a person must be how old to hold a real estate license?
18
In what two ways can a bundle of rights be held?
Rights in the bundle may be held by one party or separated and held by different parties.
In a co-op, how is the value of a unit identified?
The number of shares purchased reflects the value of the apartment unit in relation to the property’s total value.
If a single party owns the fee or life estate
the ownership is an estate (ownership) in severalty.
Co-Ownership
means that a parcel is owned by two or more persons or organizations. Co-owners are called co-tenants
In Texas there are three types of co-ownership that are recognized:
Tenancy in common
Joint tenancy
Community property
Tenancy in Common
is the most common form of co-ownership when the owners are not married. Co-tenants share an indivisible interest in the estate. All tenants in common have distinct and separable ownership of their respective interests.
Joint Tenancy
two or more persons collectively own a property as if they were a single person. Rights and interests are indivisible and equal. Each has a shared interest in the whole property which cannot be divided up.
In Texas, community property laws
state that the husband and wife are equal partners. Community property law distinguishes real and personal property into categories of separate and community property. Separate property belongs to one spouse; community property belongs to both spouses equally.
Condiminium
a hybrid form of ownership of multi-unit residential or commercial properties. It combines ownership of a fee simple interest in the airspace within a unit with ownership of an undivided share, as a tenant in common, of the entire property’s common elements, such as lobbies, swimming pools, and hallways. A condominium unit is one airspace unit together with the associated interest in the common elements.
The condominium unit can be held
jointly, in severalty, in trust, or in any other manner allowed by state law. Unit owners hold an exclusive interest in their individual apartments, and co-own common elements with other unit owners as tenants in common.
In a cooperative, or co-op, the person owns shares in a
non-profit corporation or cooperative association, which in turn acquires and owns an apartment building as its principal asset. Along with this stock, the shareholder acquires a proprietary lease to occupy one of the apartment units.
Businesses can
purchase, hold and sell property in much the same way as a private individual can.
Businesses can be organized as
Sole proprietorship Partnership Joint venture Corporation Limited Liability company Syndicate Real estate investment trust
