Unit 4: Forms of Real Estate Ownership- 6% Flashcards
Common Elements
Parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium or are normally in common use by all the condominium residents. Each condominium owner has an undivided ownership interest in the common elements.
Community Property
A system of property ownership based on the theory that each spouse has an equal interest in the property acquired by the efforts of either spouse during marriage. A holdover of Spanish law found predominantly in the western U.S. states; the system was unknown under English common law.
Condominium
The absolute ownership of a unit in a multiunit building based on a legal description of the airspace the unit actually occupies, or a separate dwelling unit in a multiunit development, plus an undivided interest in the ownership of the common elements in the building or development, which are owned jointly with the other condominium unit owners.
Cooperative
A residential multiunit building whose title is held by a trust or corporation that is owned by and operated for the benefit of people living within the building who are the beneficial owners of the trust or shareholders of the corporation, each possessing a proprietary lease to a property unit.
Co-ownership
Title ownership held by two or more persons.
Corporation
An entity or organization, created by operation of law, whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until it is dissolved according to legal procedures.
General Partnership
See partnership.
all the partners participate in the operation and management of the business and share full liability for business losses and obligations
a typical form of joint venture in which each general partner shares in the administration, profits, and losses of the operation.
Joint Tenancy
Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, the decedent’s interest passes to the surviving joint tenant or tenants by the right of survivorship.
Limited Liability Company (LLC)
A form of business organization that combines the most attractive features of limited partnerships and corporations.
Limited Partnership
See partnership.
consists of one or more general partners, as well as limited partners.
Partnership
An association of two or more individuals who carry on a continuing business for profit as co-owners. Under the law, a partnership is regarded as a group of individuals rather than as a single entity separate from the individual owners. A general partnership is a typical form of joint venture in which each general partner shares in the administration, profits, and losses of the operation. A
Partnership
is an association of two or more persons who carry on a business for profit as co-owners. In a general partnership, all the partners participate in the operation and management of the business and share full liability for business losses and obligations. A limited partnership consists of one or more general partners, as well as limited partners. The business is run by the general partner or partners. The limited partners are not legally permitted to participate, with the result that each can be held liable for business losses only to the amount invested. The limited partnership is a popular method of organizing investors because it permits investors with small amounts of capital to participate in large real estate projects with minimum personal risk.
If a partner in a general partnership dies, withdraws, or goes bankrupt, the traditional common law result would be to dissolve the partnership, which could be reorganized as a partnership of the surviving partners in order to conduct business. Nearly every state has now adopted the Uniform Partnership Act, which provides for the continuation of the existing business even under these circumstances.
In a limited partnership, the partnership agreement may provide for the continuation of the organization after the death or withdrawal of one of the partners.
Right Of Survivorship
See joint tenancy.
Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, the decedent’s interest passes to the surviving joint tenant or tenants by the right of survivorship.
Separate Property
Under community property law, property owned solely by either spouse before the marriage, acquired by gift or inheritance during the marriage, or purchased with separate funds after the marriage
Severalty
Ownership of real property by one person only; also called sole ownership.
Tenancy By The Entirety
The joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse, the survivor becomes the owner of the property.
Tenancy In Common (TIC)
A form of co-ownership by which each owner holds an undivided interest in real property as if each were sole owner. Each individual owner has the right to partition. Unlike joint tenants, tenants in common have the right of inheritance.
Time-share
A form of ownership interest that may include an estate interest in property and that allows use of the property for a fixed or variable time period.
Town House
A type of residential dwelling with two floors that is connected to one or more dwellings by a common wall or walls. Title to the unit and lot vest in the owner who shares a fractional interest with other owners in any common areas.