Unit 6: How Ownership is Held

Flashcards covering California property ownership types, concurrent ownership (Tenancy in Common, Joint Tenancy, Community Property), business entity ownership, and Common Interest Developments (CIDs).

What is the definition of tenancy in the context of property law?

A mode or method of ownership or holding title to property.

What is the purpose of title vesting?

It serves as evidence that the owner of land is in lawful possession and acts as proof of ownership.

Under what system did ownership of real property follow during Spanish and Mexican rule in California?

Roman Civil Law.

What treaty ended the war with Mexico in $1848$, leading to California becoming a possession of the United States?

The Treaty of Guadalupe Hidalgo.

What form of ownership exists when property is owned by one person or a single corporation whose rights are not shared with others?

Ownership in severalty.

From what root word is 'severalty' derived, and what does it mean?

It is derived from the word 'sever,' meaning 'detached from (others).'

What is an undivided interest?

An interest held under the same title by two or more people, whether their rights are equal or unequal in value or quantity.

What is the 'default' method of holding co-owned title in California if no other form is specified?

Tenancy in common ($TIC$).

What is the only 'unity' or requirement of equality for tenants in common?

The equal right of possession (undivided interest).

If a cotenant in a tenancy in common pays a disproportionate share of property taxes, what are they entitled to?

They are entitled to recover those costs from the other cotenants.

What happens to a cotenant's interest in a tenancy in common upon their death?

The interest can be bequeathed through a will, and the heirs become tenants in common with the surviving owners.

What is a partition action?

A court proceeding to settle a dispute between co-owners by dividing their interests in real property, often resulting in a forced sale.

What is the most significant difference between joint tenancy and tenancy in common?

The right of survivorship, where the share of a deceased member automatically goes to the surviving cotenants.

What are the four unities required to create a joint tenancy?

$1.$ Unity of time, $2.$ Unity of title, $3.$ Unity of interest, and $4.$ Unity of possession.

Can a joint tenant transfer their share of ownership through a will?

No, because of the right of survivorship, the interest passes instantly to surviving joint tenants at the moment of death.

What document must a surviving joint tenant record to reflect binary change in title after a cotenant's death?

An 'affidavit of the death of joint tenant.'

What form of concurrent ownership is unique to spouses and inherited from Spanish legal tradition?

Community property.

What is 'quasi-community property'?

Property acquired outside of California that would have been community property if it had been acquired within California.

Under California law, what must both spouses provide for any transfer or encumbrance on community real property?

Both spouses must sign.

What categories of property are excluded from community property treatment?

Property owned before marriage, property acquired during marriage as a gift or inheritance, and income/appreciation from separate property.

What was the core ruling in the case of Marvin v. Marvin ($1976$) regarding non-marital partners?

Non-marital partners cannot rely on family law for financial benefits but can rely on express or implied contracts.

According to Family Code Section $1101$, what is the penalty for a spouse who deliberately conceals a community asset during dissolution?

A penalty equal to the non-disclosing party's entire ($100\times \text{half}$) share of the concealed asset.

In a sole proprietorship, what is 'double taxation' and how is it avoided?

Double taxation occurs when both the entity and the owner are taxed; it is avoided because the owner files one tax return where profits are treated as personal income.

What is the difference between a general partner and a limited partner in a limited partnership?

General partners have equal management control and full liability; limited partners contribute funds but have no control and liability limited to their investment.

What is the legal status of a corporation regarding property ownership?

It is a separate legal entity ('legal person') that can buy, sell, own property, and enter contracts independently of its owners.

What is a Common Interest Development ($CID$)?

A project that combines individual ownership of private dwellings with an interest in common with other owners, governed by an association.

How is ownership structured in a Planned Development ($PD$)?

Owners have fee title to their separate dwelling and the lot underneath it, while common areas are owned and managed by a homeowners' association.

How does a condominium differ from other CIDs regarding land ownership?

Owners have a separate interest in a unit (airspace) and an undivided interest in common in the underlying land and structure.

How is a stock cooperative (co-op) ownership transferred?

By assigning a proprietary lease to the buyer along with the seller's stock certificate in the corporation that owns the property.

What is a timeshare (interval ownership)?

The common ownership of a property where each owner has the exclusive right to occupy a unit for a specified period each year.