Unit 8 Flashcards
Fee simple estate can be held 3 ways:
severalty - one individual or corp
co-ownership by 2 or more
trust - a third individual holds title for the benefit of another
Tenants in common
2 or more and each person holds an undivided fractional interest, possession of whole property, can sell without consent of others and portion passes according to their will or state statute; this is default ownership; can sell or convey your portion without other person having a say
joint tenants
owned by 2 or more w/ unity of ownership, includes rights of survivorship;
4 unities required for joint tenancy
possession
interest
time @ same time
title
Requirements for unities
title acquired by 1 deed
deed executed and delivered at one time
conveys equal interests
individual possession
IL allows sole owner to deed to herself and others as joint tenants, not tenants in common
TRUE
Terminating joint tenancy
destroyed when one of the 4 unities is terminated
Termination by Partition Suit
Partition is legal way to dissolve relationship when they don’t voluntarily agree; court will separate or sell property and divide proceeds
Tenancy by the Entirety
in Illinois allowing husbands and wives use this special form for primary residence. Has rights of survivorship. Only convey by both parties signing deed and no right to partition or divide; provides some protection from creditors if against only one party
Tenancy by the Entirety terminated by:
court ordered to satisfy judgement
death of either spouse
agreement
divorce
Community Property
husband and wife equal partners; any property acquired during marriage is equally obtained
Trust - Living and Land
Device by which a person transfers ownership to someone to hold or manage for benefit of third party
Land Trusts
trust in which real estate is only asset
in IL beneficiary’s name must be revealed in land trust when
- to housing authority for complaints
- when applying for license or permit
- if trustee named as defendant in lawsuit
- arson investigation
Land Trust Term
usually 20 years
Living and Testamentary Trusts
property owner establishes trust to provide for his financial care or that of family. May continue for lifetime or certain age
REIT
Real Estate Investment Trust - investors get tax benefits
Business Organization Ownership Types:
Partnership
2 or more persons who carry on business
Corporation
legal entity, exists until formally dissolved
LLC
limited liability of corp and tax advantages of partnership
syndicates
join together but not legal entity
joint ventures
join together for one project
Condo Ownership
own fee simple title to unit, undivided interest in common elements as tenants in common and no right to partition; pay association fees
Coop
corporation holds title and offer shares of stock to potential tenants
Townhouse ownership
any type of housing with common walls
Time Share
multiple purchasers by shares in real estate with fixed time
To Sell must have license unless:
exchange company
existing time share owner who refers
no more than 20 prospective purchasers
and receives no more than $1000 for referrals
and limits activities to referrals
Time Share Estate
fee simple interest
limited to contractural period
Time Share Use
right to use and occupy for certain # of years
