Real Estate Unit 3

Ownership in Severalty

when property is owned by one individual, corporation, or other entity

• sole owner is severed or cut off from other owners

• has sole rights to property and sole discretion to sell, lease, leave in a will, or otherwise transfer part of or all of the ownership right to another person

Co-ownership

when title to a parcel of real estate is held by two or more individuals

• aka concurrent owners

Joint Tenancy with Right of Survivorship

upon the death of a joint tenant the deceased’s interest transfers directly to the surviving joint tenant(s)

• no formal legal action required

• if only two joint tenants, the death of one owner terminates the joint tenancy

• created by conveying a deed, giving a will, or a living trust

• PITT, possession, interest, title, and time

• terminated by one of the four unities being terminated

Joint Tenancy: PITT

Unity of Possession: all joint tenants hold an undivided right to possession

Unity of Interest: all joint tenants hold an equal ownership interest

Unity of Title: all joint tenants acquire their interests at the same time

Unity of Time: all joint tenants acquire their interests by the same document

Partition

legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination

Tenancy by the entirety

special form of co-ownership used in some states that allows a spouse to inherit the other spouse’s ownership interest

Forms of co-ownership

Tenants in common

Joint tenants

• they only differ in how ownership is conveyed/transferred after one dies

Tenancy in common

each tenant holds an undivided interest