Ownership - What Is Real Estate 2

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Cooperatives

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A Cooperative is a building that is owned by a corporation. The shareholders of the corporation live in one of the building units. Rather than owning the individual unit, they own a percentage of the corporation that owns the entire building.

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For example, a 100 unit cooperative is built by a corporation for $10 Million. Sally can buy 1% of the corporation for $100,000 and occupy one of the units with a proprietary lease. Sally's interest in the cooperative may be transferred by selling her shares in the corporation along with her lease to a new buyer.

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Condominiums

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A condominium complex is a group of units that are each owned by individuals. Each owner owns their own unit individually as well as a percentage share of the common elements.

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For Example, Kevin buys a condominium unit for $100,000. He owns his entire unit and has rights to use the community pool. When he wants to sell his unit, he may sell it, transfer the deed, and the new buyer can move in.Watch the following video clip for a basic explanation of what a condominium is.

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Time Sharing

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Time SharingTime sharing is exactly what it sounds like. Time sharing is the sharing of time to use and enjoy real estate. Owners of a time share property typically own an interest in the property and are entitled to use the property periodically as agreed upon on an agreement that was made when the property was acquired.

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For example, Husband and Wife, Bill and Martha buy a time share interest of 20% of a mountain property in Park City, Utah. Since they have a 20% interest in the property, they are entitled to use the property 20% of the time, or approximately 10 weeks a year according to the agreed upon schedule. Bill and Martha are also responsible to pay 20% of the property expenses per year.

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Planned Unit Developments

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Planned Unit Developments (PUD) are usually large real estate developments that involve the planning and development of land into residential and commercial properties.In the development stages of a PUD the developer will work with the government in developing a plan that is in line with the local master plan and supports the goals of the community environmentally, and economically. A PUD is advantageous for developers that otherwise may not be able to build certain types of developments because of zoning regulations.

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2Baseline and Meridian

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To further divide the land and make it easy to locate property, the land is divided up further into townships and sections as shown below in the diagram. Each township is 23,040 acres, and each section is 640 acres of land.

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Rectangular or Governmental Survey

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The U.S. Public Land Survey System (often referred to as the Rectangular Survey) is the most commonly used method used today. The system was developed by congress in 1785.The system is a grid system that starts at an initial point, using a principal meridian and baseline intersecting perpendicularly at the initial point. The land is divided in to squares that are about 36 miles square called townships.

A row of townships is called a tier and runs north to south from baseline A column of townships is called a range which runs east to west from the principal meridian Each township is numbered based on its distance from the principal meridian and baseline. So if a township is 2 townships east of the meridian and two townships north of the baseline, it would have a label of T2N R2ETownships are then divided into 36 sections which are numbered as shown in the figure below. The sections are approximately 1 mile square or 640 acres. Each section is then divided into quarters. Depending on the land parcel, the quarters may or may not be subdivided to give a more accurate description of the parcel.

A land parcel is described starting with its location in the quarter, moving outwards from there. A typical example would described as follows:SE 1/4, NW ¼, Sec. 8, T1S, R2W, Salt Lake MeridianThe description is read as follows:The southeast quarter of the northwest quarter of Section 8 of Township 1 South, Range 2 West of the Salt Lake Meridian. This is 1/4 of 1/4 of a section or 1/16 of a section which equals 40 acres.

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Metes and Bounds

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is one of the oldest methods of describing a parcel of land. Each description starts with a point of beginning (POB). The POB needs to be an easily identifiable object that is permanent. The POB object should be verified with another permanent object within proximity and should be located on a corner of the property.The metes and bounds method is a running description; this is where each part of the description gives a direction and length that needs to be traveled. The running description needs to be followed step by step and eventually leads back the POB.

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Plats

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Typically when a developer creates a new subdivision a plat map will be created showing each parcel or lot of the subdivided land. A plat map will be created like the example shown below. Plats are usually presented to and approved by the local municipality before the subdivision is created.

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Informal References

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Informal references may also be used to help clients, surveyors and other people in the location of properties. The most common form of an informal reference is a simple address. Most municipalities are divided up into some form of street system with the most common, especially here in Utah, being a system using grid blocks. Streets are numbered according to how far away they are from the center of town. Other streets that run in various directions are given a name as shown below.

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Surveyors

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Surveyors are experts in describing and identifying land for use by investors, contractors, homeowners, and others involved in the real estate industry.