11.2 Co-Ownership

*Pop Quiz* Each spouse in a community property has equal rights to which of the following...?

>Alienation > Management >Testamentary disposition

>Any property acquired during a marriage are attained by a mutual effort. >Separate Property ,owned by solely by the Husband or Wife prior to the marriage or received by gift or inheritance after marriage.

>Also includes any property purchase with separate funds after the marriage. or proceeds from the sale of Separate Property. □ Settlement or Judgments proceeds for personal injury or property separated by a written contract signed during a separating marriage on both sides . ® Either spouse can get their own separate property during the marriage as long as the non -purchasing spouse signs off and agrees to other spouse getting the property. **Income earned from an Separate Property is considered Community Property.** > Any property classified as Separate Property can be Mortgage or conveyed by the spouse and ownership without the written signature of the non-owning spouse.(Unless the property is an Homestead then different Laws apply ).

Allows the spouses interest to pass Probate free for the surviving spouse in the event of death. Only available in;

>Arizona >California >Nevada >Texas >Wisconsin

Terminate Joint Tenancy

>Joint Tenancy is destroyed if 4 of any of the Unities is terminated. > Although the Joint Tenant is free to convey their interest in the Jointly held property ,doing so destroys the Unity of Interest thus destroying the Joint Tenancy. > Reginal of Law : Foreclosure or Bankruptcy >Partition Suit

*Pop Quiz* Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship is known as...?

>Joint tenancy

Common Law requires that theirs 4 Unities to create a Joint Tenancy, these Unities are;

>Time >Title > Interest >Possession

Partition

A division of real or personal property or the proceeds therefrom among co-owners.

Common Law requires that theirs 4 Unities to create a Joint Tenancy

All 4 of these are in the present when the Title is acquired from one Deed, executed and delivered all at one time and conveys equal interest to all Grantees who hold this undivided possession of the property as Joint Tenants.

When two or more people obtain Title to Real Estate and the Deed does not stipulate the character of the Tenancy created by law it is considered Tenancy in Common. (Shares can be equal or unequal; Unity of Possession and the Interests can be Sold, Conveyed , Mortgaged or Transferred without the consent of the remaining Co-Tenants and the interests are inheritable).

Conveyance made to the Husband or wife with no further explanation creates a Community Property Interest .

Even though property may be Separate, an equitable interest exists for the non-owning spouse under certain circumstances.

Ex. ® Advancement of value from the Separate P. from Community Property Funds during the marriage. > Spouse brings separate rental property into the marriage , and does a kitchen remodel using community funds . >Community Property Funds are used to discharge all or part of the mortgage on Separate P.

The equitable interest created is in proportion to the amount of payments paid from the community funds verses the amount made from separate funds .

If a Marriage fails , the court is required to pose an Equitable Lien on Community or Separate P. to secure the claim for reinvestment

Community Property

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse had equal rights of management, alienation, and testamentary disposition of community property.

Partition Suit

Tenancy in Common or Joint Tenancy to terminate their Co-Ownership in a suit to partition a land. The right of Partition is the legal way to resolve Co-Ownership when the party cant VOLUNTARLY agree on its termination. >The court determines that the land cannot be divided into EQUAL VALUE, then the court will consider the Real Estate sold and divide the proceeds of the sale among the Co-Owners , according to the fraction of interest.

Right of Survivorship

The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.

Joint Tenancy

Two or more natural persons own that comes with a special benefit called the right of survivorship.

Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.

○ Because the Law presumes a Tenancy in Common relationship , if two or more married people hold an interest in property . A Joint Tenancy Agreement must be signed and be a written agreement of the joint owners. **THE AGREEMENT MUST STATE THE RIGHT OF SURVIVORSHIP and grantees must be identified as Joint Tenants with the Right of Survivorship**