Ownership of Real Estate Flashcards

Study Notes

Ownership Types

Tenancy in Severalty: Sole ownership by one person or entity; title passes to heirs upon death.
Tenancy in Common: Ownership by two or more people with undivided interest; interests can differ in size, and can be sold without consent from others; shares pass to heirs upon death.
Partitioning: If co-owners cannot agree, a court may partition the property physically or order a sale to divide proceeds based on fractional interests.

Joint Tenancy

Key Feature: Includes right of survivorship; deceased tenant's interest automatically passes to remaining tenants.
Creation Requirements: Must establish four unities: time, title, interest, possession. All must acquire equal interests simultaneously through the same deed.
Termination: Can be destroyed if any unities are broken; selling or transferring interest disrupts joint ownership.

Tenancy by the Entirety

Specific to legally married couples; carries rights of survivorship and no right to partition unless both parties agree.

Business Ownership Structures

Sole Proprietorship: Owned by one individual, with all profits and liabilities falling to the owner.
Partnership: Involves two or more individuals sharing profits, losses, and management.
General Partnership: All partners manage and share liability for business obligations.
Limited Partnership: Includes general partners who manage and limited partners who do not participate in management, with liability limited to their investment.

Corporations and Limited Liability

Corporation: A legal entity managed by a board; ownership can be in severalty or as tenants in common; not eligible for joint tenancy due to perpetual existence.
Stock as Personal Property: Shareholders do not directly own real estate but have ownership through stock.

LLCs and Investment Models

Limited Liability Company (LLC): Combines tax advantages of partnerships with liability protection akin to corporations.
Real Estate Syndication: Involves multiple individuals pooling resources for a specific property project.
Joint Venture: A temporary collaboration for a singular project, differing from ongoing partnerships.

Condominiums and Cooperatives

Condominium Ownership: Provides deed for the unit and undivided interest in common elements; owners manage taxes and insurance separately.
Homeowners Associations (HOA): Collect fees for maintenance of common areas and enforce rules through bylaws.
Cooperative (Co-op): Ownership is through stock in a corporation, with occupancy rights rather than direct ownership of real estate. Monthly charges cover expenses and liabilities.

Regulations and Conversions

Horizontal Properties Act: Governs condominium creation in New Jersey.
Condo Conversion: Requires state approval for converting rental apartments into condominiums; protections available for specific tenants during the process.

Other Ownership Types

Townhouse: Share party walls; ownership can be fee simple or condominium style.
Time-Share: Provides fractional ownership or use rights over a defined period, with options to rent or sell shares under specific agreements.

Description

Explore essential terms in real estate ownership with these flashcards. Learn about different types of ownership, including tenancy in severalty and tenancy in common. Perfect for students and professionals familiarizing themselves with real estate concepts.