*NOT SURE: Real Estate Ownership and Leasehold Estates

Joint Ownership and Suit to Partition

• Joint ownership can lead to disagreements, necessitating a suit to partition.

• Example: C wants to dissolve co-ownership with A and B.

  • C first asks A and B to buy out his share.

  • If A and B refuse, C can attempt to sell his share (three-eighths interest).

  • Tenancy in common allows each party to have a separate deed.

    • A owns one-eighth (deed).

    • B owns one-half (deed).

    • C owns three-eighths (deed).

  • Selling partial ownership can be difficult.

• Suit to Partition:

  • C hires an attorney and petitions the court to force a sale.

  • The judge can order all parties to sell, with proceeds divided according to ownership shares.

  • This forces the sale of the entire property.

Joint Tenancy

• Joint tenancy implies a unity of ownership.

• Creation Requirements (Four Unities):

  • T-TIP is an acronym to remember the four unities: Time, Title, Interest, and Possession.

  • Time: All owners must acquire title simultaneously.

  • Title: All joint tenants must be on one deed.

    • Unlike tenancy in common, where each owner has a separate deed.

  • Interest: Equal ownership interest is required.

    • Example: A, B, and C each own one-third.

  • Possession: Undivided interest, meaning all parties share possession.

Right of Survivorship

• Key Characteristic: If a joint tenant dies, their ownership interest goes to the surviving owners.

• Commonly used for married couples.

  • If a husband dies, ownership transfers to the wife, and vice versa.

• Example:

  • C dies; C's one-third ownership goes to A and B, who then each own one-half.

  • If B dies, B's one-half share goes to A, who becomes the sole owner.

• Voluntary Act: Must be an intentional act to create joint tenancy.

  • The deed must explicitly state "joint tenants with right of survivorship" and not "tenants in common."

  • The default is tenancy in common; courts assume owners want their family to inherit, not business partners.

Termination of Joint Tenancy

• Occurs when any of the four unities (T-TIP) are destroyed.

• Methods of Termination:

  • Suit to Partition: One party forces the sale (not applicable to married couples).

  • Sale of Interest: One joint tenant sells their interest.

    • Example: A, B, and C are joint tenants; C sells to D.

    • A and B remain joint tenants.

    • D, having bought in later, becomes a tenant in common with a one-third share.

• Example continued:

  • B dies; B's one-third share goes to A (right of survivorship).

  • A owns two-thirds, and the joint tenancy ends (only one joint tenant left).

  • A becomes a tenant in common with D, who still owns one-third.

  • If A dies, A's two-thirds share goes to A's heirs. If D dies, D's one-third share goes to D's heirs (under tenancy in common).

Tenancy by the Entireties

• Similar to joint tenancy but exclusively for married couples (husband and wife).

• Requires right of survivorship and TTIP (time, title, interest, possession).

• Functions like joint tenancy, requiring marriage.

Community Property

• Some states recognize community property laws.

• Separate Property: Property acquired before marriage.

  • Individual spouses retain sole ownership.

  • Example: If a man owns property before marriage, he retains it after divorce.

• Community Property: Property acquired during marriage.

  • Spouses have equal interest.

  • Example: Upon divorce, community property is divided equally (50/50).

Leasehold Estates

• Deals with leasing property.

• Leasehold Estate: Considered personal property of the tenant.

  • The tenant has the right to occupy the property, but it's not the tenant's real estate.

  • The right to be there is personal property.

• Lessor: The giver of the lease (landlord).

• Lessee: The receiver of the lease (tenant).

• Demise: Transfer of rights in real estate through a lease. The lease document will refer to the demised premises.

• Reversion: Upon lease expiration, the property reverts to the lessor.

Types of Leasehold Estates

• Estate for Years: Definite beginning and ending date.

  • The term "years" is misleading; it simply means a fixed term.

  • Example: A lease from July 1 to September 15 or a lease from Sunday night to the following Saturday night.

• Periodic Tenancy (Month-to-Month): No definite end date; continues periodically.

  • Tenant unsure how long they need the space.

  • Can be month-to-month or year-to-year.

  • Requires notice to terminate, typically 30 or 90 days.

• Tenancy at Will: No written lease, but tenant has permission.

  • Example: Lease expires December 31, but the tenant stays in January, sends rent, and the landlord accepts.

  • Implied leasehold estate is created.

• Tenancy at Sufferance: Tenant stays over without permission.

  • Landlord must evict the tenant.

  • *Mnemonic: Landlord suffers because of eviction expenses.

Additional Points

• Tenancy and estate are interchangeable terms.

  • Tenancy at sufferance = estate at sufferance.

• Leasehold estates are also called less than freehold estates.

  • Freehold implies ownership.

• Tenancy at sufferance is the lowest form of estate because the tenant remains without permission.