Forms of Ownership

Question 1

Ownership in Severalty

Answer 1

property is owned by one individual, corporation, or other entity.

Question 2

Tenancy in Common

Answer 2

each tenant holds undivided interest. Can use entire property even though holds fractional interest. ownership interest, not property that is divided. Interest passes according to will or trust.

Question 3

Joint Tenancy

Answer 3

right of survivorship. Needs UNITY of

• possession
• interest
• time
• title

Question 4

Tenants by the Entirety

Answer 4

Spouses equal undivided interest. right of survivorship; conveys by deed signed by both.

Question 5

Community Property

Answer 5

Spouses equal partners. real & personal property acquired during marriage is Community Property. Conveyance needs both signatures. no right of survivorship. passes according to will or state law.

Question 6

Trust

Answer 6

device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a 3rd party.

Question 7

Living Trust

Answer 7

trust created by agreement during the property owner’s lifetime

Question 8

Testamentary Trust

Answer 8

Trust established by will after property owner’s death.

Question 9

Land Trust

Answer 9

Trust in which property is conveyed and in which real estate is the ONLY asset.

Question 10

General Partnership

Answer 10

All partners share full responsibility for losses and obligations.

Question 11

Limited Partnership

Answer 11

1 or more general partners with limited partners. Run by general, limited can not participate and only liable for amount invested.

Question 12

Limited Liability Companies (LLC)

Answer 12

limited liability of corporate ownership. Offers tax advantages of partnership (no double taxation). Flexible management structure.