Unit 4 Forms of Real Estate Ownership

This set of flashcards covers essential vocabulary and definitions related to forms of real estate ownership, including various types of co-ownership, trusts, and business organizations.

Ownership in severalty

Property owned by one individual, corporation, or entity, severed from other owners.

Co-ownership

Title to a real estate parcel held by two or more individuals, known as co-owners.

Tenancy in common (TIC)

A form of co-ownership where each tenant holds an undivided fractional interest in the property.

Joint Tenancy

A form of co-ownership with undivided interests and the right of survivorship.

Right of survivorship

The right of surviving joint tenants to inherit the deceased tenant's interest without going through probate.

Tenancy by the entirety

A special form of co-ownership between spouses, allowing one spouse to inherit the other’s share upon death.

Community Property

Property acquired during marriage, regarded as equal ownership by both spouses.

Partition

A legal way to dissolve co-ownership when parties cannot agree to terminate their relationship.

Trust

A legal device where property is transferred to one party to manage for the benefit of another.

Limited Liability Company (LLC)

A business organization that provides limited liability and tax advantages similar to a partnership.

Condominium

Ownership of individual units coupled with shared ownership of the common elements of a property.

Cooperative

A property where ownership is held by a corporation, and tenants own shares in that corporation.

Time-share

A real estate interest that allows multiple purchasers to occupy a property during specific times of the year.

Trustor

The person who creates a trust and transfers property to it.

Trustee

The individual or entity overseeing the trust, managing the property for the benefit of the beneficiary.

Beneficiary

The person or entity that receives the benefits of a trust.

Limited Partnership

A partnership structure with general partners managing the business and limited partners with investment liability.

General Partnership

A partnership where all partners manage the business and are personally liable for debts.