Flashcards in Chapter 5 Yellow Text--Forms of R/E Ownership Deck (32)
Ownership by one owner, corporation or other entity
Laws are based on the idea that spouses, rather than merging into one entity are equal partners in the marriage.
Ownership by trust
property held for the benefit of another
Tenancy in Common (TIC)
each tenant holds an undivided interest in the property and each is entitled to possession and use of the entire property even though they only own a fraction of the property.
property owned by two or more people married or not. Has the Right of Survivorship.
Right of Survivorship
Upon the death of a joint tenant, the deceased's interest transfers directly to the surviving joint tenant or tenants. No legal action required other than the a copy of the death certificate being made part of the legal record. (69)
PITT or the four elements/unities that are needed to create a joint tenancy:
P-Unity of Possession-all joint tenants hold an undivided right to possession.
I-Unity of Interest-all joint tenants hold and equal ownership interest.
T-Unity of Time- all joint tenants acquire their interests at the same time.
T-Unity of Title- all joint tenants acquire their interests by the same document.
Terminating a Joint Tenancy
is destroyed when any one of the 4 unities is terminated.
is the legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination.
Tenancy by entirety
a special form of co-ownership used in some states that allows a spouse to inherit the other spouse's ownership interest upon death. Spouses who are tenants by entirety have the right of survivorship.
generally is real or personal property that was owned solely by either spouse before the marriage, acquired by gift or inheritance by one spouse during the marriage, or purchased with separate funds during the marriage.
a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a a third party.
the person who creates the trust
the person who benefits from the trust
the party who holds the legal title to the property and is entrusted with carrying out the trustor's instructions regarding the purpose of the trust.
a person who acts in confidence or trust and has a special legal relationship with the beneficiary.
A trust set up during the property owner's lifetime to provide for their financial interests.
established by will after the owners death.
Real Estate is the only asset of a land trust.
Created for the conservation of forests, farmland, and other wildlife habitats, coastal land and scenic vistas.
is an association of two or more persons who carry on a business for profit as co-owners.
all partners participate in the operation and management of the business and share full liability of business losses and obligations
consists of one or more general partners, as well as limited partners. they do not participate in the running of the business, just in the financial investment, and therefore their risk is limited.
a legal entity- an artificial person- created under the authority of the laws of the state from which it receives its charter.
it can own real estate in severalty or as a tenant in common with other natural or artificial persons.
Limited Liability Companies (LLC)
offers the benefits of the limited liability of a corporation, the tax advantages of a partnership and a flexible management structure.
ownership with horizontal property acts. The owner owns a fee simple title to the unit.
the individual condo owners specified share of the undivided interest in the remainder of the building.
Home Owners Association, administers the the Condominium and is made up of unit owners.
A corporation holds title to the land and building. Which in turn offers stock to prospective tenants.
Fee Simple Absolute ownership permits multiple purchasers to buy relatively small interests in real estate, typically resort properties.
Time share estate
includes a real property interest in a specified unit for a particular period of the year or it can be a designated share of ownership of the property expressed as a fractional interest or number of points.
Time share use
a contract right under which the developer owns the real estate. but only for a certain number of years after which the rights terminate.