Chapter 8 - Real Estate

Indirect Co-Ownership

Ex; Your company owns a property and the company is owned by you and friend

Direct Co-Ownership

Owners names are both on the deed

The four methods of Co-Ownership

1. Tenants in common

2. Joint Tenants

3. Tenants by entirety

4. Tenants in partnership

Tenants in common

-Separate, undivided shares (equal or unequal)

-Can transfer their own share

No physical division, equal rights over property

Joint Tenancy (basic)

Owners share equal ownership and equal rights to use the property

Each persons share is equal (pie chart without any lines its a shared bundle)

Joint Tenancy Right of Survivorship

If one owner dies share is automatically transferred to surviving owner

Deceased heirs get nothing from that property

Four Unities of Joint tenancy (PITT)

Possession: no division of property physically or by time of use

Interest: JT’s fractional ownership interest must be equal

Time: JTs must take title at the same time in same instrument

• strawman: A third party temporarily used to transfer property

Title: Must take title from the same grantor/bundle of rights

Tenancy by the entirety

For married couples only (spouses = one legal person)

Right of survivorship - surviving spouse gets it all

Four unities (PITT) + Marriage

Only severed through divorce and not recognized in Colorado

Tenancy in Partnership

exists when property is owned by a business partnership

Partners are co owners of property

When one dies it goes to partner not heirs

Joint tenancy = personal co-ownership.
Tenancy in partnership = business ownership held by the partnership.

Creditors rights against co-owners

Tenants in common- owners has separate title so creditor attaches lien only to debtors share

Joint Tenants- Owners share title

Inter Vivos

Inter vivos = made while alive
Opposite of: Testamentary = made after death (by a will).

Community Property (divorce)

50/50 ownership of property acquired together during the marriage

Separate property

Separate properties and upon divorce courts make an equitable distribution of marital property.

So like community property only based on fairness (equity)

Partition

Court subdivides a co-owned property into multiple individually owned properties

Ouster

One co-owner wrongfully excludes another from possession

If partition is impossible court will order sale and distribution of proceeds