Unit 4 Forms of Real Estate Ownership Flashcards
What are the three types of real estate ownership?
1-In severalty
2-Co-ownership
3-In trust
What is ownership is severalty?
Owned by a single person or corporation. Owner is severed from others.
What are the four types of ownership?
1-Tenancy in Common
2-Joint Tenancy
3-Tenancy by Entirety
4-Community Property
What is tenancy in common?
An undivided fractional interest in the property. The owners have unity of possession. Tenancy in common can have defined %, if none stated assumed to be equal shares.
Upon death only the portion of the owners is willed.
What is joint tenancy?
Property owned by two or more people where upon the death of one person the rights pass to the other owner.
How is joint tenancy created?
Deed must specifically state the tenancy. There is a need of 4 unities to create JT.
PITT Possession Interest Time Title
How are joint tenancies terminated?
One of the 4 requirements is destroyed. If one person dies and wills his share to another the heir owns the property in Joint Tenants in Common, while the remaining members still own survivorship benefit.
What is partition?
A legal way to dissolve the relationship when joint property owners do not mutually agree to the termination. If the property can’t be undivided it will be sold and proceeds divided.
What are the types of married ownership?
Tenancy by the entirety
Separate Property
Community Property
What is tenancy by the entirety?
A special form of co-ownership where the spouse inherits the others share upon death. Each person has an equal undivided ownership. Deeds need to be signed by both people.
What is separate property?
Real or personal property that was owned by either spouse before marriage, and acquired during the marriage. Each person has individual rights to their property.
What is community property?
Real or personal property acquired by either spouse in marriage. Any encumbrance or conveyance requires both parties in signatures.
What is a trust?
Device by which one person transfers ownership of property to someone else to hold, manage for the benefit of a third party.
Who make up a trust?
Trustor - The person who creates the trust.
Trustee - The party who holds legal title to the property and is carries out trustors instructors.
Beneficiary - the one who benefits from a trust
What is a living trust?
A trust created during the lifetime of property owner to expedite transfer to heirs.
