Forms of Ownership, Transfer and Recording of Title

What are the forms of ownership?

1) Estate in severalty

2) Tenancy in common

3) Joint Tenancy

4) Tenancy by the entirety

What is estate in severalty?

One person owns the property, and all other interests have been served.

What is Tenancy in Common?

Multiple people own the same property but each person owns their own share. Also your share goes to whoever you leave to when you die.

If the deed does not specify the tenancy of co-owners, what is it considered?

Tenancy in common

What is Joint Tenancy?

Two or more people own a property together and everyone gets an equal share.

What happens in a two-joint tenancy if one of the owners dies?

It turns into an estate severalty and the other owner gets all the ownership

What are the four requirements for equal interest in a joint tenancy?

1) Time

2) Possession

3) Title

4) Interest

When property is held in joint tenancy, what process does it undergo?

probate process

What is tenancy by the entirety?

co-ownership type only available to married couples that requires the four unities and includes survivorship rights

What type of ownership is a corporation thought to be?

Single entity; severalty

What are the parties to a trust?

Trustor, Trustee and beneficiary W

What is a trustor in a trust?

The person who creates the trust

What is a trustee in a trust?

The person who manages the trust and ensures the terms of the trust are carried out W

What is a beneficiary in a trust?

The person who receives income or proceeds from the trust

When is the trust created?

It is created when the trustor conveys property to the trustee with instructions for holding and managing it on behalf of the beneficiaries.

Do living trusts avoid the probate process?

Yes they avoid the process

What is a freehold?

you have ownership rights to land or property and you keep it for as long as you want (no expiration date)

What is fee simple absolute (fee simple) ?

This is the fullest form of property ownership with no special conditions that automatically end it

What is the probate process?

Is a court process that helps figure out who gets a person’s property after they die.

What may fee simple absolute be limited by?

Private restrictions (such as zoning laws or HOA)

Must a fee simple estate pass thorugh the probate process?

Yes

What is fee simple defeasible?

Property holder owns the property with all legal rights but is subject to a condition. If the condition is breached the property may go back to the original owner

What are the two fee simple defeasible?

1) Fee simple determinable

2) A fee simple subject to a condition subsequent

What is fee simple determinable and fee simple subject to a condition subsequent?

Fee simple determinable: automatically ends when event or condition occurs

Fee simple subject to a condition subsequent: owner does or doesn’t take a specific action. The estate does not revert to the original owner; it may require legal action.

What are the type of life estate and explain?

1) Pur autre vie: based on the life of someone other than the holder of the life estate/life tenant

2) Ordinary: based on the lifespan of the older of the life estate/life tenant

3) Remainder: ownership will pass to a remainderman instead of the party who established life estate

4) Reversion: ownership goes back to the original owner of the life estate

What are the bundle of rights?