Unit 4: Forms of Real Estate Ownership Flashcards
Ownership by Severalty
Ownership by ONE: Either a single person or a single entity
When all partners of real estate have equal say and liability?
General Partnership
Everyone is equal, whether they throw in money or expertise all is considered equal value
ALL IN, EQUAL STAKE
What is a limited partnership?
Has generally one General Partner which raises money to buy something. Limited partnership the partners liability is LIMITED TO THEIR INVESTMENT
What is ownership by more than one person or entity?
Concurrent ownership or Co-ownership
Share ownership with undivided interests (each own their share of the entire property)
Joint tenancy
Co-owners have the right of survivorship
Must be specified in deed
Must be equal shares
Does joint tenancy override a will?
YES - Does not go through probate
What is co-ownership with no right of surviorship?
Tenants in Common
Where the deceased co-owners interest goes to their heirs or devisees
Can have unequal shares/interests (someone can own 50%, and others can own 25% and so forth)
Allows unequal shares of ownership
is subject to probate
Each co-owner is responsible for the property taxes as an individual or group
Concurrent ownership
Common Interest Community
Is an association of owners with the authority to levy *mandatory assessments on its members
Homeowners Association: typically charge monthly dues
Condominium, cooperatives, time shares
Real estate of which portions are designated for separate ownership (units)
The remainder share ownership in common spaces (hallways, parking lot, pool, etc.)
Condominium
What is an example of a limited common element?
Balcony on a condo - owned by all, used by (one) you/your apartment
other examples: Parking space, storage unit, balconies
Association fees are enforced by what?
Foreclosable lien
What are the three things a buyer receives when owning in a Common Interest Community
1) Membership
2) Shares of stock and
3) Proprietary lease
