Ch 3 - Real Property Ownership

Life Estate

(law) an estate whose duration is limited to the life of the person holding it

Tenancy at WIll

A type of tenancy under which either party can terminate the tenancy without notice; usually arises when a tenant who has been under a tenancy for years retains possession, with the landlord's consent, after the tenancy for years has terminated.

Timeshare

AN ownership interest or use right that gives a holder a right to possession of the property for a specific limited period of time each year.

Estates Fall into two categories:

Freehold Estates and Leasehold (less-than-freehold) Estates

Estate in Remainder

Grantor gives a life estate to a grantee. Upon the death of the grantee the property goes to a third party. The third party has an estate in remainder and is called the Remainderman

Estate

IN real Property law, the word Estate refers to an interest in land that is or may become "Possessory." In other words, someone now has, or may have in the future, the right to possess the property. May alse be called a "tenancy."

Joint Tenancy

Joint ownership with right of survivorship. Ownership of real property by two or more persons each of whom has an undivided equal ownership interest with the "Right of Surviorship"

Common Elements

Parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium or are normally in common use by all of the condominium residents. Each condominium owner has an undivided ownership interest in the common elements

Ownership in Severalty

Sole ownership of property. Occurs when property is owned by one individual or corporation

Planned Unit Developments

Special types of subdivisions that combine non-residential uses with residential uses.

Community Property

System of ownership; each spouse has an equal interest in property acquired during marriage: separate property is that acquired before marriage

The forms of Concurrent Ownership include:

Tenancy in Common - Joint Tenancy - Community Property - Tenancy by the Entirety

Surrender

Termination of a lease by mutual consent is called SURRENDER

Tenancy by the Entirety

The joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse the survivor becomes the owner of the property. Tenancy By the Entirety is not recognized in the states that use a Community Property System.

Right of Survivorship

The right by which the surviving joint tenant(s) acquire a joint tenant's interest in the property upon his death.

Estate in Reversion

Title which is granted to the grantee and is granted back to the grantor in a life estate. When the designated persons die, the estate terminates and reverts to the grantors.

Concurrent Ownership

When title to one parcel of real estate is vested in two or more persons or entities. There are 4 types of this catagory of ownership.

Tenancy at Sufferance

arises when a tenant doesn't leave the premises after his or her tenancy has expired and is now a trespasser. (Referred to as a Holdover Tenant)

Limited Partnership

form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business

Leasehold

land or property held under a lease - referred to as a tenant; has possession of the property but not title. (In scertain legal contexts, they're sometimes called "chattels real"

General Partnership

partnership in which partners share equally in both responsibility and liability

Joint Ventures

when two or more companies join forces, sharing resources, risks, and profits, but not actually merging companies, to pursue a single business transaction or for a series of individual transactions. Not ongoing.

Freehold Estate

A Freehold estate is an interest in real property that has an indeterminable (not fixed or certain) duration.Usually referred to as an owner

Syndication

A Syndicate is simply a business association in which investors pool their money together to establish and carry on an enterprise

Planned Unit Development

A development with smaller lots placed close together, in order to leave more land available for open space and other COMMON areas, like parks, pools, clubhouses. etc.

Fee Simple Determinable

A fee simple estate qualified by a special limitation. Language used to describe limitation includes the words, "so long as" or "while" or "during."

Limited Liability Companies (LLC)

A hybrid between a corporation and a partnership that combines that tax advantages of a partnership with the limited liability afforded to corporate shareholders.

Periodic Tenancy

A lease, which has the original terms automatically renewed for successive periods, until proper notice to terminate is given by either the landlord or tenant. Month to month rental.

Estate for Years

A leasehold estate with a fixed term. The term may be one year, one month, one week or even one day. No notice needed to terminate.

Dower and Curtesy Rights

A legal life estate that provides the nonowning wife (dower) or husband (curtesy) a lifetime right to one-half or one-third interest in the real estate of the owning spouse even if the owning spouse wills the estate to others. Replaced by Uniform Probate Code in most states.

Allodial system

A legal system that gives full property ownership rights to individuas. It is the basis of land ownership in the United States.

Rights and Duties of Life Tenants

A life tenant has the same rights as a fee simple owner, including the right to profits or rents, and the right to lease or mortgage the property. A life tenant also has the same duties as a fee simple owner: to pay taces, assessments, and liens. Note, Must Not Commit Waste (Engage in acts that will permanently Damage the property.

Partnerships

A partnership is generally defined as an association of two or more persons to carry on a business for profit, as co-owners. Two types of Partnerships: General and Limited

Condominiums

A property that has been developed so that individual unit owners have separate title to their own units, but share ownership of the common elements as tenants in common.

Cooperatives

A property that is owned by a corporation and tenanted by shareholders in the corporation who have proprietary leases for their units.

Feudal System

A system of ownership usually associated with pre-colonial England, in which the king or other sovereign is the source of all rights. The right to possess real property was granted by the sovereign to an individual as a life estate only. Upon the death of the individual, title passed back to the sovereign, not to the decedent's heirs.

Corporations

An artificial person; a legal entity separate from its shareholders

Fee Simple Defeasible

An interest in land/estate that has limitations. Example: "as long as it's used as a church, no alcoholic beverages can be sold on the property."

Fee Simple Absolute

Is sometimes referred to as the "Estate of Inheritance." Absolute ownership. The greatest interest that one can have in real property. An estate that is without restriction, of indefinite duration, freely transferable and inheritable.

Tenancy in Common

Joint ownership where there is no right of survivorship. Two or more individuals each have an undivided interest in a single piece of property. This means that each tenant in common has a right to share possession of the whole property, not just a specified part of it. Referred to as Unity of Possession

Termination of Tenancy in Common

May be terminated by a Partition Suit, a legal action that divides the ownershop interests in the property and destroys the unity of possession.

Leased Fee

The landlords ownership interest in a property that is under lease.

Real Estate Investment Trust

an unincorporated entity that invests exclusively in real estate and real estate mortgages