Unit 4 Flashcards
What are the three types of ownership
severalty (one owner)
co-ownership
trusts
Can a corporation or other entity own a property in severalty
yes
What are the types of co-ownership
Tenancy in common (TIC)
Joint tenancy
Tenancy by the entirety
Community property
What are some names for individuals that co-own
tenants in common
joint tenants
when are the differences between the types of co-ownerships likely to become apparent
when the property is conveyed or one of the owners dies
How does possession and ownership rights work for tenants in common (TIC)
everyone is entitled to possess the entire property but they each have specific fractions of ownership
If the deed for a TIC doesnt specify the fractional interest of each owner, then what is assumed
each have an equal share of the property
Can a co-owner TIC sell or mortgage their interest without the consent of the other owners
yes
Can a co-owner of a TIC sell or mortgage the entire property
no
When two or more single individuals or couples acquire real estate and the form of ownership is not indicated, what type of ownership is it usu considered
TIC
In what situation has the TIC become popular to us e
in expensive areas because it allows multiple people to have a condo style ownership without converting the multifamily property into a condo
What is joint tenancy
everyone owns separate interest in the property but after each death of an owner the survivors acquire the deads interest without legal action
What is the ownership style after there is only one survivor left in a joint tennacy
they now own the property in severalty
Can a joint tenancy be created by the state
no
What four elements or unities are needed to create joint tenancy
Unity of possession—all joint tenants hold an undivided right to possession.
Unity of interest—all joint tenants hold an equal ownership interest.
Unity of time—all joint tenants acquire their interests at the same time.
Unity of title—all joint tenants acquire their interests by the same document.
How do you remove joint tenancy
remove one of the four unities
So if one of the four joint tenants sells their title, what happens to the ownership style for everyone
the new owner becomes a tenant in common and the remaining joint tenants keep their joint tenancy with each other
What is a partition
a legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination
What if co-owners are going through a partition and the property cannot be physically divided without destroying its value
they property will be sold and the profits split
What is a tenancy by the entirety
Tenancy of a married couple who have a right of survivorship if one dies
What are some thigns that typically cannot happen in a tenancy by the entirety
One party cannot convey a one-half interest
they have no right to partition or divide the property
What is the idea behind community property law
spouses are equal partners in a marriage rather than one entity
What is assumed when buying a property in a marriage under community property laws
that it was acquired in a mutual effort
What is probate
the process of reviewing a will
Does does co-ownership override
a will
Where does joint tenancy need to be listed
on the deed
What is a general partnership
everybody participates in the operation and management of the business
everyone shares full liability for business losses and obligations
What is a limited partnership
consists of general and limited partners
the generals run the business
the limited partners are not allowed to participate in business but are liable to losses up to the amount they have invested
What is the uniform partnership act and what is something it does
it allows continuation of a business by letting it reform with new general partners after a general partner dies, goes bankrupt or withdraws
What are the condo laws also called
horizontal property acts
What do the condo laws specify
the owner of each unit has a fee simple title to their unit and undivided interest in the common elements
The undivided interest int he common elements between the condo owners are considered what type of ownership
TIC
Because condo ownership is a fee simple estate they owners have a right to sell their condo, but what might get in the way of this right
if the condo assoc. includes a right of first refusal, then the owner would have to offer the same price sought after to the other owners before they could accept outside offers
What is a limited common elements
things are used exclusively by an individual owner but still are subject to the condo assoc’s restrictive covenant
What are examples of limited common elements
patios
self storage units
balconies
What is a time share
a right to occupy the facility for a certain period in the year for a fixed number of years
