Chp 8 - Forms Of Real Estate Ownership

Front 1

name the 3 ways a fee simple estate can be held

Back 1

severalty
co-ownership
trust

Front 2

-ownership of real property by one person
-may be single individual or an artificial person such as a corporation

Back 2

severalty
(also called sole ownership)

Front 3

-husband and wife can own separate property
-other spouse has no ownership rights to that property, unless the state has dower and curtesy interests as well as homestead rights
-property owned before marriage, or inherited after, is considered separate property

Back 3

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Front 4

title ownership held by 2 or more persons

Back 4

co-ownership

Front 5

name the 4 forms of co-ownership

Back 5

tenancy in common
joint tenancy
tenancy by the entirety
community property

Front 6

-form of co-ownership by which each tenant holds an undivided fractional interest in real property as if he/she were sole owner
-deed will state fractional interest held, if not stated, owners are presumed to hold equal shares
-have right of inheritance
-each co-owner can sell, convey, mortgage his/her interest without consent of other co-owners
-no individual may transfer the ownership of the entire property

Back 6

tenancy in common

Front 7

-ownership of real estate between 2 or more parties who have been named in one conveyance as ________ tenants
-right of survivorship applies
-can be created only by the intentional act of conveying a deed or giving the property by will

Back 7

joint tenancy

Front 8

-upon the death of a joint tenant, his/her interest does not pass to heirs or according to a will; the entire ownership remains in the surviving joint tenant(s)
-last survivor takes title in severalty ans has all the rights of sole ownership

Back 8

right of survivorship

Front 9

name the 4 unities required to create joint tenancy

Back 9

-unity of possession - all joint tenants holding an undivided right to possession
-unity of interest - all joint tenants holding equal ownership interests
-unity of time - all joint tenants acquiring their interests at the same
-unity of title - all joint tenants acquiring their interest by the same document
----PITT

Front 10

the 4 unities are present when the following requirements are met....

Back 10

-title is acquired by one deed
-deed is executed, signed, and delivered at one time
-deed conveys equal interests to all of the parties
-parties hold undivided possession of the property as joint tenants

Front 11

how is joint tenancy terminated

Back 11

-destroyed when any one of the 4 unities of joint tenancy is terminated
-joint tenant is free to convey his/her interest in the jointly held property but doing so destroys the unities of time and title; new owner cannot become a joint tenant

Front 12

division of cotenants' interests in real property when the parties do not all voluntarily agree to terminate the co-ownership; takes place through court procedures

Back 12

partition

Front 13

-joint ownership of property acquired by husband and wife during marriage
-upon the death of one spouse the survivor becomes the owner of the property
-during their lives, they can convey title only by a deed signed by both parties

Back 13

tenancy by the entirety

Front 14

4 ways tenancy by the entirety may be terminated...

Back 14

-death of either spouse
-agreement between both parties (execution of new deed)
-divorce (leaves the parties as tenants in common)
-court-ordered sale to satisfy a judgment
-J's DAD
-Judgment sale
-death
-agreement
-divorce

Front 15

-real or personal property that was owned solely by either spouse before the marriage
-includes property acquired by gift or inheritance during the marriage, as well as any property purchased with separate funds during marriage

Back 15

separate property

Front 16

-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
-requires signature of both spouses
-no right of survivorship; spouse dies, survivor automatically owns 1/2 of the community property; the other 1/2 is distributed according to the deceased spouse's will

Back 16

community property

Front 17

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

Back 17

trust

Front 18

one to whom something is trusted, and holds legal title to property and administers the property for the benefit of a beneficiary; or a member of a board entrusted with the administration of an institution or organization, such as a cooperative

Back 18

trustee

Front 19

one who places property in a trust

Back 19

trustor

Front 20

-person for whom a trust operates or in whose behalf the income from a trust estate is drawn
-trust may continue for this person's life time or when the person reaches a certain age or when other conditions are met

Back 20

beneficiary

Front 21

a trust that is created during one's lifetime

Back 21

living trust

Front 22

a trust established by will after the owner's death

Back 22

testamentary trust

Front 23

-trust where real estate is the only asset
-beneficiary is usually also the trustor (beneficial interest is personal property)
-beneficiary retain management and control of the real property and has the right of possession and the right to any income or proceeds from its sale
-frequently created for the conversation of farmland, forests, coastal land, and scenic vistas
-public records do not name the beneficiary
continues for a definite term

Back 23

land trust

Front 24

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

Back 24

partnership

Front 25

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

Back 25

general partnership

Front 26

-consists of one or more general partners as well as limited partners
-business is run by the general partner(s)
-limited partners not legally permitted to participate, and each can be held liable for business losses only to the extent of his/her investment

Back 26

limited partnership

Front 27

act which permits real estate to be held in the partnership name

Back 27

Uniform Partnership Act (UPA)

Front 28

-an artificial person created under the authority of the laws of the state from which it receives its charter
-managed and operated by its board of directors
-because it is a legal entity, can own real estate in severalty or as a tenant in common
-has continuous existence until it is dissolved according to legal procedures

Back 28

corporation

Front 29

-individuals participate, or invest, in a corporation by purchasing stock
-because stock is personal property, shareholders do not have direct ownership interest in the real estate owned by a corporation
-losses limited to the amount of his/her investment

Back 29

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Front 30

-2 or more people or firms joined together to make and operate a real estate investment
-not a legal entity
-may be organized into a number of ownership forms including co-ownership (tenancy in common, joint tenancy), partnership, trust or corporation

Back 30

syndicate

Front 31

-form of partnership in which 2 or more people or firms carry out a single business project
-venture is for one specific project only, rather than for a continuing business relationship

Back 31

joint venture

Front 32

-members enjoy the limited liability offered by a corporate form of ownership and the tax advantages of a partnership
-offers flexible management structures without the complicated requirements of S corporations or the restrictions of limited partnerships

Back 32

limited liability company (LLC)

Front 33

-condominium laws
-owner of each unit holds a fee simple title to the unit
-individual owners also own a specified share of the undivided interest in the remainder of the building and land

Back 33

horizontal property acts

Front 34

absolute ownership of a unit in a multiunit building based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other unit owners

Back 34

condominium

Front 35

-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 of the condominium residents
-each unit owner owns these as tenants in common
-unit owners do not have same right to partition that other tenants in common have

Back 35

common elements

Front 36

act that provides that a condominium is created and established when the owner of an existing building (or the developer of unimproved property) executes and records a declaration of condominium

Back 36

Uniform Condominium Act (UCA)

Front 37

once established as a condominium

Back 37

each unit becomes a separate parcel of real estate that is owned in fee simple and may be held by one or more persons in any type of ownership or tenancy recognized by state law

Front 38

-condominium may be mortgaged
-real estate taxes are assessed and collected on each unit as an individual property

Back 38

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Front 39

-a corporation holds title to the land and building
-corporation then offers shares of stock to prospective tenants
-price for each apartment becomes the price of the stock

Back 39

cooperative

Front 40

-'cont from other card
-purchaser becomes a shareholder in the corporation by virtue of stock ownership and receives a proprietary lease to the apartment for the life of the corporation

Back 40

cooperative

Front 41

-because stock is personal property, the cooperative tenant-owners do not own real estate, then own an interest in a corporation whose asset is the building

Back 41

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Front 42

IRS treats cooperatives as it does fee simple interest in single homes or condominiums in regard to deductibility of loan interest, property taxes, and homesellers' tax exclusions

Back 42

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Front 43

lending institutions view the shares of stock as acceptable collateral for financing

Back 43

cooperative

Front 44

-any type of housing connected by common walls
-has at least 2 floors
-title to the unit and lot vest in the owner who shares a fractional interest with other owners for the common areas

Back 44

town house

Front 45

-ownership permits multiple purchasers to buy interest in real estate
-each owner receives the right to use the facilities for a certain period of time

Back 45

time-share

Front 46

-type of time share that includes a real property interest in condominium ownership
-is a fee simple interest
-owner's occupancy and use of the property are limited to the contractual period purchased
-never end because they are real property interests

Back 46

time share estate

Front 47

-type of time share that is a contract right under which the developer owns the real estate
-interest transferred to an owner by the developer of the project
-consists of the right to occupy and use the facilities for a certain number of years
-at the end of that time, owner's rights terminate
-developer has sold only a right of occupancy and use to the owner, not a fee simple interest

Back 47

time share use

Front 48

-similar to time share use
-owner purchaes the right to use the developer's facilities, which usually consist of an open area with minimal improvements (such as camper and trailer hookups and restroom)

Back 48

membership camping