Real Estate Exam - Chapter 8: Forms Of Real Estate Ownership

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Real Estate Exam - Chapter 8: Forms Of Real Estate Ownership

Real Estate Exam - Chapter 8: Forms Of Real Estate Ownership

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4 Form of Co-Ownership/Concurrent Ownership:
Tenancy in Common
Joint Tenancy
Tenancy by the entirety
Community Property
Tenancy in Common:
How you convey?
What happens when you die?

- Undivided fractional interest in the property - physical property not divided - the ownership interest is.
- Co-owners have unity of possession
- Can do what you want with your part (sell/transfer etc)
When you die - passes to heirs / according to will
Joint Tenancy:
How you convey/create?
What happens when you die?

- Must be explicitly created by one deed
- When you die your piece goes to other owners until there is only one owner (not to heirs) Right of Survivorship.
- Free to convey but this destroy unities of Time and Title. A new owner is not a joint tenant.
Four Unities required for Joint Tenancy :
- Possession
- Interest
- Time (acquired at same time)
- Title (acquired by one document)
Termination of Co-ownership by Partition Suit
Legal way to dissolve relationship. If cannot be physically divided, court sale and division of proceeds.
Tenancy by the Entirety:
Special co-ownership for married couples
- Both parties must sign deed for title transfer
- One spouse dies, other becomes sole owner
Tenancy by the Entirety:
How terminated?
- Judgment sale (court ordered to pay debts)
- Death
- Agreement
- Divorce (leaves as tenants in common)
Community Property
no Right of Survivorship (one half to remaning spouse, other half via will or state law)
- Living and testamentary trust
- Land trust
Living Trust - created during owners lifetime
Testamentary Trust - by will
- Conveys Real/Personal property to a trustee who will assume certain duties. (i.e. manage for the sake of a beneficiary)
Upon death of trustee, passes to beneficiary
Ownership of Real Estate by Business Organizations:
1) Partnership
General Partnership - equal liability / everyday mgmt etc
Limited Partnership - General & Limited partners (who cannot participate - investors)
2) Corporations
Legally regognized as a single person
- Can own real estate in severalty or as tenant in common
- Stock is personal property (don't have any interest in the actual real estate)
3) Syndicates / Joint Ventures
One of more firms/people joined in real estate investment, can be organized into other ownership forms
- Join Venture - one time thing
4) LLCs
Limited Liability Corporation
Refresh: Own the studs in (a fee simple title to the unit)
- Common elements owned as tenants in common
- Condo association / condo fees etc
- Established when declaration in public record made
Cooperative Ownership:
- Do not own unit, own an interest in the the corpoation's building asset.
- Corporation does maintenance etc
- Tenants have proprietary leases
- Burden of defaulted payment falls on co-owners (not on person like in a condo)
Townhouse Ownership:
Most townhouse developments are PUD's
Can transfer / sell / will etc
Time Share Ownership:
Time share estate
Time share use
3 Basic Forms of Ownership:
In Severalty - title held by 1 person
In Co-ownership
In Trust (3rd party holds title for benefit of another)