Real Estate Ownership

To create joint tenancy, four groups or unities (PITT) are needed:

1) Unity of possession—all joint tenants holding an undivided right to possession 2) Unity of interest—all joint tenants holding equal ownership interests 3) Unity of time—all joint tenants acquiring their interests at the same time 4) Unity of title—all joint tenants acquiring their interests by the same document

Tenancy in common

A form of co-ownership by which each owner holds an undivided interest in real property as if each were sole owner. (right to inheritance)

Partition

A legal way to dissolve the relationship when the parties do not voluntarily agree to its termination. - If the court determines that the land cannot be divided physically into separate parcels without destroying its value, the court will order the real estate sold.

limited liability company (LLC)

An LLC combines the most attractive features of limited partnerships and corporations.

T or F: In tenancy in common, each tenant holds a divided fractional interest in the property.

False

T or F: The death of a shareholder in a corporation results in the dissolution of the corporation.

False

Severalty is what?

Ownership of real property by one person only; also called sole ownership.

Separate property

Property owned solely by either spouse before the marriage, acquired by gift or inheritance after the marriage, or purchased with separate funds

Community property

Real and personal property acquired by either spouse during the marriage. Any conveyance or encumbrance of community property requires the signatures of both spouses

Land trusts

Real estate is the only asset- (conservation of farmland, forests, coastal land, and scenic vistas).

Real property owned by public entities, such as cities, counties, states and public agencies are generally owned in what?

Severalty

T or F: The individual unit owners of a condominium own the common elements as tenants in common.

True

Community property laws

based on the idea that a husband and wife, rather than merging into one entity, are equal partners in the marriage.

The four requirements for unities are the following:

1) Title is acquired by one deed. 2) The deed is executed, signed, and delivered at one time. 3) The deed conveys equal interests to all of the parties. 4) The parties hold undivided possession of the property as joint tenants.

Trusts

A trust is a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.

Partnership

Association of two or more persons who carry on a business for profit as co-owners.

Model Real Estate Time-Share Act

Deals with time-share management and protections for purchasers of units.

T Or F: Public entities generally own real property in trust.

False

T or F: Condominium laws are often called vertical property acts.

False

T or F: The forms of real estate ownership are controlled on a national level to promote uniformity throughout the country.

False

Tenancy by the entirety

Is a special form of co-ownership used in some states that allows the husband or the wife to inherit the other spouse's ownership interest upon death. In this form of ownership, each spouse has an equal, undivided interest in the property

Common Elements

Other parts of the property: hallways, elevators, stairs & Pools etc.

joint tenancy

Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. (the right of survivorship)

Condominium

The absolute ownership of the unit or mult-unit building

co-ownership is what?

Title ownership held by two or more persons.

T or F: A joint tenancy can be created by conveying a deed or giving the property by will or living trust.

True

T or F: General partnerships are dissolved and must be reorganized if one partner dies, withdraws, or goes bankrupt.

True

Trust is what?

where a neutral individual holds title for the benefit of another. "Beneficiary" The one who conveys the trust is called the trustor.