Unit 3: Forms of Ownership Flashcards
What are the 3 forms of ownership?
1) Estate in Severalty (Sole Ownership)
2) Concurrent Ownership (Multiple Ownership)
3) Common Interest Ownership
What is estate in severalty?
Ownership by an individual or an entity.
T/F Concurrent ownership is when an individual owns a property.
False. Concurrent ownership happens occurs when there is MULTIPLE ownership.
What are the 3 kinds of concurrent ownership?
1) Tenants in Common
2) Joint Tenants
3) Tenancy by the Entirety (NOT IN MN)
How is tenants in common and joint tenants different?
In tenants in common there is no right of survivorship to the other owner but in joint tenants there is the right of survivorship.
T/F The right to survivorship in a joint tenant ownership overrides a will.
True
What are the 4 conditions that need to be met in order for joint tenant ownership?
PITT:
1) Possession
2) Interest
3) Time
4) Title
What properties have common interest community ownership?
- Condos
- Townhouses
- Cooperatives
- Time shares
In condos and townhomes there are common elements, how are these common elements owned?
Tenants in Common
What is described in a condo’s declaration?
The declaration describes the legal and physical structure of the unit including the common and limited common elements.
What is the difference between common elements and limited common elements?
Common elements are areas used by all the owners. Limited Common Elements are areas that are also shared but each owner is reserved a “spot” in the shared area.
What are examples of common elements?
Swimming pool, tennis court, hallways, elevators, etc.
What are examples of limited common elements?
Assigned parking spots, storage units, balconies, etc.
T/F Condos and townhomes ownership is transferred by a bill of sale.
False. Properties/units in a condo or townhome are transferred by a DEED.
Who regulates common interest communities?
A state’s common interest ownership act.
