Forms of Ownership – Real Estate Vocabulary

Vocabulary flashcards summarizing major ownership forms, key legal terms, and unities of ownership from the lecture notes.

Trust

A legal arrangement in which title to property is placed in the hands of one or more third-party trustees who manage it for the benefit of named beneficiaries.

Undivided Interest

A co-owner’s share that carries the right to possess and use the entire property, not just a specific portion.

Common Areas

Land and improvements in a condominium or cooperative that all residents use and own together as tenants in common.

Limited Liability Company (LLC)

A business entity whose profits and losses pass through to members’ personal tax returns while providing liability protection similar to a corporation.

Cooperative

A housing form in which residents obtain the right to occupy a unit by purchasing shares of stock in the owning corporation.

Partnership

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

Corporation

A legal entity created under state law, separate from its owners, that can own property, sue, and be sued.

Tenancy in Common

Co-ownership by two or more persons with undivided interests but without the right of survivorship; interests may be unequal and freely transferable.

Limited Partnership

A partnership that includes general partners who manage the business and limited (silent) partners whose liability is restricted to their investment.

Joint Tenancy

A co-ownership form where all owners hold equal undivided interests and enjoy the right of survivorship.

Limited Common Areas

Portions of a condominium or cooperative owned by all residents but reserved for the exclusive use of one owner or unit (e.g., balconies, parking spaces).

Proprietary Lease

An exclusive, long-term lease held by a shareholder in a cooperative, granting the right to occupy a specific unit.

Non-marital Property

Property owned before marriage or received individually during marriage (e.g., gift or inheritance) and kept separate from marital assets.

Timeshare

A property arrangement in which multiple buyers purchase interests that permit use of the real estate for designated time periods each year.

General Partnership

A partnership where all partners share equally in management, profits, and liability for debts.

Condominium

A real estate development in which each owner holds fee simple title to an individual unit plus an undivided interest in common areas.

Ownership in Severalty

Sole ownership of real property by one individual or legal entity.

Tenancy by the Entirety

A form of property co-ownership limited to married spouses that includes the right of survivorship and requires all five unities.

Partition

A legal action or agreement that dissolves co-ownership by dividing the property or forcing its sale.

Right of Survivorship

Feature of certain co-ownership forms (joint tenancy and tenancy by the entirety) whereby a deceased owner’s interest automatically passes to the surviving co-owners.

Unities of Ownership

The five conditions (Possession, Interest, Time, Title, Person) that must coexist to create or maintain certain co-ownership estates.

Unity of Possession

All co-owners have the same undivided right to occupy and use the whole property.

Unity of Interest

All co-owners hold equal ownership shares in the property.

Unity of Time

All co-owners acquired their interests simultaneously.

Unity of Title

All co-owners acquired their interests through the same deed or will.

Unity of Person

Co-owners (spouses) are regarded as a single legal entity; unique to tenancy by the entirety.

Deed

A written instrument used to voluntarily transfer real property during a person’s lifetime.

Devise

A testamentary gift of real property conveyed through a will upon the owner’s death.

Operation of Law

The automatic transfer or creation of rights or interests because of legal statutes rather than an intentional act by the parties (e.g., inheritance, divorce).