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42 Cards in this Set
- Front
- Back
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TENANCY IN SEVERALTY |
- sole ownership; single party owns the fee or estate - when solo owner is married, states may require rights be released to avoid marriage-related claims - estate of deceased tenant in severalty passes to heirs by probate |
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CO-OWNERS = |
co-tenants |
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TENANCY IN SEVERALTY = |
ownership in severalty, estate in severalty |
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TENANCY IN COMMON = |
estate in common |
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TENANCY IN COMMON |
- when owners aren't married - at least 2 owners - identical rights but only to their part - electable ownership shares - they decide how much they own - no survivorship - estate passes to heirs by probate not other tenants-in-common - no unity of time - can acquire shares at different times |
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JOINT TENANCY |
- 2 or more people own property as if they were a single person - unity of ownership - single title for all owners - equal ownership - equal shares - transfer of interest - can only transfer his share - survivorship - when dies, interest passes to surviving joint tenants (no heir claims) - one tenant left - becomes estate in severalty - good: interests pass with no need for probate |
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creation of JOINT TENANCY |
4 unities: unity of time - acquire same time unity of title - use same deed unity of interest - equal interest unit of possession - equal rights of possession paperwork must say joint tenants with rights of survivorship or state considers it estate in common |
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PARTITION SUIT |
can terminate joint tenancy or tenancy in common - foreclosure can, too |
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TENANCY BY THE ENTIRETIES |
- ownership reserved for husband & wife - survivorship: interest passes to spouse - equal interests: can't transfer a part to outside owner - only joint debts leave it open to foreclosure - termination: by divorce, death, mutual agreement or judgment for joint debt |
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COMMUNITY PROPERTY |
defines property rights of legal spouses |
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SEPARATE PROPERTY (not COMMUNITY) |
- owned before marriage - inheritance or gift during marriage - prop. acquired w/separate prop. funds - income from separate prop. |
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COMMUNITY PROPERTY |
- all other prop. earned or acquired through marriage - can't be transferred or encumbered w/out both spouses' consent - when spouse dies - 1/2 community prop. to spouse and 1/2 to heirs |
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TENANCY IN PARTNERSHIP |
form of ownership for business partners - provided by Uniform Partnership Act - equal rights to all partners but prop. must be business-related |
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ESTATES IN TRUST |
TRUSTOR (fee owner, grantor) transfers title to TRUSTEE who holds & manages title for the BENEFICIARY - trust can be created by deed, will, or TRUST AGREEMENT |
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TRUSTEE'S DUTIES |
- maintaining the condition & value of the property. - TRUST AGREEMENT outlines these responsibilities. |
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LIVING TRUST |
- TRUSTOR conveys title to TRUSTEE for benefit of 3rd party. - TRUSTEE manages property, BENEFICIARY receives income & sale proceeds (after trustee fee's). |
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TESTAMENTARY TRUST |
same as living trust but takes effect when TRUSTOR dies. TRUSTOR's will establishes the trust. |
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LAND TRUST |
TRUSTOR can convey the fee estate to TRUSTEE and make himself the BENEFICIARY. Only for real property. TRUSTEE holds title & has duties. TRUSTOR = person BENEFICIARY = can be corporation Must be renewed or TRUSTEE has to sell prop. & distribute proceeds |
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DEED IN TRUST |
document which gives BENEFICIARY rights to possess & use prop. and to exercise control over TRUSTEE's actions |
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Info @ BENEFICIARIES & LAND TRUSTS
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- B. controls property (occupancy, sale)
- B. controls TRUSTEE - T. needs approval from B. to sell or encumber prop - B.'s identity is not on record (secret) |
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LAND TRUSTS make these things easier |
- transferring - can transfer interest by assignment not deed - encumbering - can pledge prop. as security for debt by collateral assignment not mortgage - probating - probate takes place where BENEFICIARY lived not where prop. is. |
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CONDOMINIUMS |
hybrid form of ownership of multi-unit residential or commercial properties - combo of FEE SIMPLE INTEREST in airspace w/in unit + ownership of undivided share (as TENANT IN COMMON) of whole prop.'s common elements like lobby, halls, pool |
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CONDO. UNIT |
one airspace unit in condo. bldg. + interest in common elements |
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COMMON ELEMENTS (in CONDOS) |
necessary for existence, operation & maintenance of condo units - land - structural components of bldg. - physical systems like plumbing, power, A/C - rec. facilities - bldg. & common ground - stairways, elevators, hallways, laundry rooms |
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How are CONDOS created? |
by executing & recording a CONDO DECLARATION & MASTER DEED |
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CONDO DECLARATION |
- created by developer - includes: legal description, plat maps of bldg & units identified, provision for common area easements, ID of unit's share of overall prop., org. plan for creation of condo assoc. & bylaws, liability for expenses, covenants & restriction on use & transfer of units. |
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Sale/Encumbrance of CONDOS |
- condo units can be sold/mortgaged or encumbered w/out interference from other owners - units can be foreclosed & liquidated - resale could depend on condo assoc. approving buyer - units are individually taxes |
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CONDO OWNER's ASSOCIATION |
- created by CONDO DECLARATIONS to enforce bylaws & manage prop. - often headed by board of directors - board decided how prop. managed & by whom - oversees prop. finances & admin. of policy |
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CONDO OWNER's RESPONSIBILITIES |
- maintain internal systems - maintain prop. condition - insure contents of unit |
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COMMON AREA ASSESSMENTS |
- unit owners bear cost of all other prop. expenses - annual operating budget totals expenses and gives owners assessments monthly - if owners don't pay, condo board can initiate action to foreclose - assessment = share; 10% ownership, 10% of total assessment fees |
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COOPERATIVES |
one owns shares in non-profit corp. or co-op association which acquires & owns the bldg. - shares = value of individual unit in relation to whole prop. value (this is how much property expenses they pay) |
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Co-ops - who has the real property interest? |
- only co-op assoc. has real property interest - undivided interest in entire property- no ownership in individ. units like w/condos - co-op owners' interest = stock & a lease (personal property) - co-op owners don't own unit or undivided interest in common elements like condo owners |
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PROPRIETARY LEASE |
- co-op lease b/c tenant is owner of the corp. which owns the property - lease has no fixed rent - tenant pays pro rata share of corp.'s expenses - lease has no terms - ends when owner sells lease |
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What happens when co-op member doesn't pay? |
- corp. owns undivided interest in property - debts apply to whole prop. not just one unit - one person not paying could mean foreclosure on whole prop. |
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How are co-op shares transferred? |
owner assigns stock & lease to new buyer |
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CO-OP ASSOCIATION |
- created by developer to form co-op, buys the property - control use & ownership of apartments' units. Voting power = shares |
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TIME-SHARES |
fee or leasehold interest in prop. whose owners agree to use prop. on periodic basis - ex. vacation/resort property - share property's expenses |
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LEASEHOLD TIME-SHARE |
tenant agrees to rent prop. on scheduled basis over a specific # of years |
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TIME-SHARE FREEHOLD = |
INTERVAL OWNERSHIP ESTATE |
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TIME-SHARE FREEHOLD |
- tenants in common own undivided interests in property - expenses can be prorated & rules governing use are in separate agreement - interval owners waive right of partition (so one owner can't force sale of property) |
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How are TIME-SHARES more regulated than before? |
stricter disclosure requirements @ cost/risks, cooling off period after signing |
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