CH 5-1: Forms of Ownership

In some states, this is property acquired during marriage that is automatically owned equally by the married couple.

Community Property

Any form of ownership in which two or more people share title to a piece of property, holding undivided interests.

Co-ownership || co-tenancy || concurrent ownership

A form of co-ownership in which the co-owners have equal undivided interests and the right of survivorship; requires the unities of time, title, interest, and possession.

Joint Tenancy

Property acquired by either a spouse or a legal partner during the course of a marriage or civil union.

Marital Property

Any property that was owned prior to the marriage or civil union or that was given or devised by will to only one spouse or legal partner during the term of the marriage or civil union.

Non-Marital Property

Ownership by a single person or legal entity, as opposed to co-ownership.

Ownership in Severalty

A court action to divide real property among its co-owners so each owns part of it in severalty, or receives a share of sale proceeds.

Partition, Judicial

When co-owners agree to terminate their co-ownership, dividing the property so each owns a piece of it in severalty.

Partition, Voluntary

A characteristic of joint tenancy and tenancy by the entirety, in which surviving co-tenants automatically acquire a deceased co-tenant’s interest.

Right of Survivorship

A form of property co-ownership by a married couple or partners in a legal civil union, in which each has an equal and undivided share.

Tenancy by Entirety

A form of co-ownership in which two or more persons each have an undivided interest in the entire property but no right of survivorship.

Tenancy in Common

A co-tenant’s share of the property giving them the right to possession of the whole property rather than a particular section.

Undivided Interest

Each co-owner has an equal share of ownership in a property.

Unity of Interest

Both co-owners are considered a single legal entity; applies only to married couples or partners in a legal civil union.

Unity of Person

Each co-owner is equally entitled to possession of the entire property because ownership interests are undivided.

Unity of Possession

Each co-owner acquires title simultaneously.

Unity of Time

Each co-owner acquires confirmed ownership through the same instrument such as a deed, will, or court order.

Unity of Title

TRUE or FALSE: Larry owns his house in severalty and leaves it to his grandson, Sean, by will. When Larry dies, Sean is the sole owner created by devise.

TRUE: The property was transferred to new sole owner Sean through devise, which is Larry’s will.

TRUE or FALSE: Taylor and Beth buy a house together as tenants in common. The deed shows Taylor owns 75%, Beth owns 25%. Beth can occupy 100% of that house.

TRUE: Beth can occupy 100% of the property even with a 25% interest because co-ownership grants an undivided interest in the property.

TRUE or FALSE: Under tenancy in common, if Taylor dies, his 50% interest automatically goes to co-owners Beth and Lucy.

FALSE: Under tenancy in common, when one co-owner dies, their share goes to heirs named in their will.

TRUE or FALSE: Friends Pam, Renee, and Louise buy a cabin as joint tenants, so each has a 100% interest.

FALSE: Each has a one-third interest in the property but the right to possess 100% of it.

TRUE or FALSE: When Pam and Renee die, Louise owns the cabin in severalty as the only surviving joint tenant.

TRUE: As the only surviving joint tenant, Louise automatically becomes the sole owner regardless of wills.

Matt, Merritt, and Maury co-own a property as joint tenants. Maury sells his share to Melanie. What form of co-ownership is this?

All are joint tenants.

All are tenants in common.

Matt and Merritt are joint tenants; Melanie is a tenant in common.

Matt and Merritt are joint tenants; Melanie is a tenant in severalty.

Matt and Merritt are joint tenants; Melanie is a tenant in common.

YES or NO: Matt, Merritt, and Melanie each own a one-third interest in their property, but they decide that they all want the stability of the right of survivorship. Is this possible?

Yes: They already have unity of possession and interest. A new deed would give them unity of time and title, so the three co- owners could sign a new deed specifying joint tenancy with right of survivorship.

TRUE: They already have unity of possession and interest; a new deed gives them unity of time and title.

TRUE or FALSE: Matt, Merritt, and Melanie can restore joint tenancy by signing a new deed.

TRUE or FALSE: When joint tenants partition a property, each still owns an undivided interest.

FALSE: Once partitioned, each becomes an owner in severalty of their specific lot.

Ron and Deb own their home as tenants by the entirety. In the event that Ron dies, the house would go to:

Deb in severalty.

Deb and Ron’s named heir as joint tenants.

Ron’s named heir.

The county in which the property is located if he dies intestate.

Deb in severalty.

TRUE or FALSE: Real estate professionals should advise clients on the best form of ownership.

FALSE: That’s the role of a legal or tax professional; agents should refer clients to experts.

Larry owns his house in severalty. He has a will that leaves the house to his grandson, Sean. When Larry dies, Sean is the ________ created by ________.

Sole Owner / Devise