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.

common elements

Parts of a property shared by all unit owners, such as hallways, elevators, and recreational facilities. Each condominium owner has an undivided interest in these areas.

Co-ownership

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

Condominium

The absolute ownership of an individual unit in a multi-unit building based on legal description of the airspace the unit actually occupies, along with shared ownership of common elements.

Cooperative

A residential multiunit building in which residents own shares in the corporation that owns the property, granting them the right to occupy a unit. Each possessing a proprietary lease to a property unit.

Community Property

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

General Partnership

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

Joint Tenancy

Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, the decedent’s interest usually passes to the surviving joint tenant or tenants by the right of survivorship..

Limited Liability Company (LLC)

A form of business organization that combines the characteristics of a corporation and a partnership, providing owners protection from personal liability while allowing for pass-through taxation.

Limited Partnership

A partnership structure with general partners managing the business and limited partners are not legally permitted to participate. Limited partners have restricted liability and contribute capital.

Partition

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

Right of survivorship

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

separate property

Property owned by one spouse exclusively before the marriage, acquired by gift or inheritance during the marriage, or purchased with separate funds after the marriage.

severalty

Ownership of real estate by one person or entity; also called sole ownership.

Tenancy by the entirety

A special form of co-ownership between spouses. Upon death of one spouse, the survivor becomes the owner of the property.

Tenancy in common (TIC)

A form of co-ownership where each tenant holds an undivided fractional interest in the property. Tenants in common have the right to sell or transfer their interest without approval from the other tenants.

Trust

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

Trustee

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

Trustor

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

Time-share

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

town house

A type of multi-family housing where individual units share walls but have separate entrances and may have multiple stories. They typically feature a small yard or garden.