Ownership in Severalty vs. Co-Ownership Flashcards
Brother and sister each hold title for vacation property. What am I?
Co-Ownership
What is Severalty?
Sole Ownership
What is Co-Ownership?
Two or more Owners of a Title or Parcel
Co-Ownership is also known as what?
Concurrent owners or Co-owners
TIC in practice on back.
The problem of owning the right to use an entire property, but having only a fractional ownership interest, usually is resolved by agreement of the co-tenants to specify the part of the property that each will use individually and the part of the property that will be shared. In a residential property with three units, for instance, if there are three TIC interests, each co-tenant may, by agreement of all three, occupy a specified unit, with all three having the right to use all other areas, such as a basement storage space or outdoor space. The agreement should also specify how responsibility for property maintenance, expenses, and taxes is to be shared. Unless all three units are very comparable, this is where any differences may be equalized, with the co-tenant who enjoys the use of the largest or most desirable unit paying a larger portion of the expenses.
When each owner holds an undivided interest as if a sole ownership, is what type of co-ownership?
TIC Tenants in Common
When a couple or individuals acquire ownership of a real estate and the form ownership has not been indicated, the new tenants are known as what type of co-ownership and how is it divided?
Usually divided in equal parts and are known as Tenants in Common or TIC.
If in a TIC, if one owner dies and leaves a deed that gives his interest to 2 or more individuals, how is that divided if not already stated in the deed?
Evenly divided amongst the new owners of only decedent’s portion of the parcel or real estate.
Unlike Tenants in common, joint tenants have right to inheritance. T/F?
False. TIC, not joint tenants have the right of inheritance because TIC interest may be passed down or transferred to specified person(s).
In TIC, co-owners may sell, convey, mortgage, or transfer interest without the consent of the other owner. Why is this and to what limit?
Because co-owners in a TIC own separate interests as if in a sole ownership. However, co-owners may NOT sell the entire property.
In a TIC, how can an interest in real estate be transferred?
Through a Will, heirs, or by terms of trust
Joint Tenancy is considered only between two persons. T/F?
False. Joint Tenancy is between 2 or more persons
What happens when one of the 2 joint tenants dies?
The Joint Tenancy is then terminated and the surviving tenant now owns the property as sole ownership
What is Joint Tenancy?
Two or more parties have ownership of a property.
Why is a joint tenancy nonheritable?
Because when one joint tenant dies, their interest is automatically transferred to the surviving tenants through Right of Survivorship. Only until one surviving joint tenant is left, is the property then considered sole ownership and may be inherited by the heirs of the last owner.
