Ch. 8 Forms Of Re Ownership

Front 1

severalty

Back 1

when property is owned by an individual or a corporation

Front 2

tenants in common

Back 2

each tenant holds an undivided fractional interest in the property

(may convey their interest)

Front 3

joint tenancy

Back 3

title is held as if all owners collectively constitute one unit

(if conveyed, new tenant is tenant in common)

Front 4

right of survivorship

Back 4

in a joint tenancy, the deceased's interest transfers to the surviving joint tenants

Front 5

4 unities to create a joint tenancy

Back 5

possession - undivided right to possession

interest - equal ownership

time -acquire at the same time

title - acquire by the same deed

Front 6

partition

Back 6

legal way to dissolve a coownership when the parties don't voluntarily agree to its termination

Front 7

tenancy by the entirety

Back 7

special form of coownership for husband and wife where each spouse has an equal undivided interest in the property

(they are considered one unit)

Front 8

community property laws

Back 8

a husband and wife are equal partners and therefore any property acquired during a marriage is considered to be obtained by mutual effort (9 states have adopted this)

Front 9

separate property

Back 9

real/personal property that was owned solely by either spouse before marriage - it also includes properties gifted/inherited during the marriage - and property bought with separate funds during the marriage

Front 10

community property

Back 10

all other property acquired by either spouse during the marriage

Front 11

marital property

Back 11

IL has similarities to community property states

-marital and nonmarital property

-nonmarital property is property that was acquired before the marriage or by gift or inheritance at any time.

Front 12

trust

Back 12

a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party

Front 13

living trust

Back 13

trust created in the owner's lifetime

Front 14

testamentary trust

Back 14

trust established by will after the owner's death

Front 15

land trust

Back 15

permitted in IL - trust where RE is the only asset

Front 16

partnership

Back 16

an association of 2 or more persons who carry on a business for profit as co-owners

Front 17

general partnership

Back 17

all the partners participate in the operation and management of the business and share full liability for business losses and obligations

Front 18

limited partnership

Back 18

consists of one or more general partners and limited partners (investors who don't participate)

Front 19

corporation

Back 19

a legal entity created under the authority of the laws of the state from which it receives its charter

Front 20

board of directors

Back 20

group of ppl that manage and operate a corporation

Front 21

charter

Back 21

sets forth the powers of the corporation

Front 22

S corporation

Back 22

alternative form of business ownership that provides the benefit of a corporation as a legal entity but avoids double taxation

Front 23

Limited Liability Company (LLC)

Back 23

combines the most attractive features of limited partnerships and corporations

Front 24

syndicate

Back 24

is two or more ppl or firms joined together to make and operate a real estate investment

Front 25

joint venture

Back 25

a form of partnership in which 2 or more ppl/firms carry out a single business project (characterized by a time limitation)

Front 26

real estate investment trust (REIT)

Back 26

RE investors take advantage of the same tax benefits as mutual fund investors.

Front 27

cooperative

Back 27

a corporation holds title to the land and building and then offers shares of stock to prospective purchasers.

Front 28

propriety lease

Back 28

a buyer in a cooperative becomes a shareholder in the corporation and receives a proprietary lease to a designated apartment for the life of the corp.

(stock is personal property - owners do not own RE)

Front 29

townhouse

Back 29

a type of housing connected by common walls

Front 30

timeshare

Back 30

several joint owners have the right to use a property as a vacation home under a time sharing agreement

Front 31

timeshare estate

Back 31

is a fee simple interest

Front 32

timeshare use

Back 32

the right to occupy and use the facility for a certain number of years

Front 33

public offering statement

Back 33

disclosure that must be given to purchasers of timeshares

Front 34

voidable timeshare interest period

Back 34

within 5 calendar days after the receipt of the public offering statement or the execution of the purchase contract - whichever is later