Real Estate Unit 4

Forms of Real Estate Ownership

Ownership in severalty

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

Tenency in Common TIC

Each tenant holds an undivided interest in the property. The co-owners have unity of possession.

Co-ownership

When title to a parcel of land is held by two or more individuals.

Joint Tenancy

Ownership of real estate between two or more parties who have been named in one conveyance.

Common Elements

Parts of a property shared by owners, such as hallways, pools, or gardens in a condominium.

Community Property

A form of co-ownership in which both spouses own an equal share of property acquired during their marriage, typically recognized in certain states.

Condominium

A type of residential property that consists of individual units owned privately, along with shared common areas managed collectively by all owners.

Cooperative

A form of housing where residents own shares in a corporation that owns the building, allowing them to occupy individual units. Management and decisions are typically made collectively by shareholders.

Co-ownership

A legal term describing the situation where two or more individuals share ownership rights and responsibilities for a property.

Corporation

A legal entity formed to conduct business, which can own property, enter contracts, and issue stock. In real estate, this entity may own buildings or manage property through shareholder interests.

General Partnership

A business arrangement where two or more individuals share ownership, profits, and liabilities in a real estate venture, often combining resources and expertise for property management or investment.

Joint Tenacy

a form of property co-ownership where two or more individuals hold title to the same property with equal rights and the right of survivorship.

Limited Liability Company

A flexible business structure that combines the benefits of a corporation and a partnership, offering limited liability to its owners while allowing for pass-through taxation. In real estate, this structure is often used to protect personal assets and manage property investments.

Limited Partnership

A business arrangement where there are one or more general partners who manage the business and one or more limited partners who invest capital but have limited involvement in day-to-day operations, thus limiting their liability.

Partition

The legal process of dividing co-owned property among owners, allowing each to have a separate interest.

Partnership

A business structure where two or more individuals share ownership and management responsibilities, typically involving shared profits and losses.

PITT

An acronym for the four unities required for a joint tenancy, which includes possession, interest, time, and title.

Right of survivorship

A legal right in joint tenancy that allows the surviving owner(s) to inherit the deceased owner's share of the property, bypassing probate.

Separate Property

Property owned by one spouse only, not shared with the other spouse. This typically includes assets acquired before marriage or through inheritance.

Severalty

A form of property ownership where only one individual holds the title, providing exclusive rights and responsibilities over the property.

Tenancy by entirety

A type of joint ownership available only to married couples, where both spouses have equal rights to the property, and one spouse cannot sell or transfer their interest without the other's consent.

Time-share

A form of ownership or right to use a property for a specific period each year, typically in vacation settings, allowing multiple owners to share the costs and use of the property.

Town House

A style of residential property that shares one or more walls with adjacent properties, often arranged in a row, and typically featuring multiple levels.

Trust

A legal arrangement where a trustee holds assets on behalf of beneficiaries, managing the property according to specified terms.