Real Estate Exam Prep: Forms of Ownership

Key Definitions

• Title: Ownership of property.
  • Severalty: Sole or independent ownership by a single person or entity (one name on the deed).
  • Concurrent Estate: Property owned by more than one person at the same time.

Types of Concurrent Estates

1. Tenancy in Common

   • Most common form of concurrent ownership.
   • Ownership is assumed to be tenancy in common unless stated otherwise.
   • Multiple persons own separate and distinct titles with unity of possession.
   • Upon death, interest passes to the heirs, not other co-owners.

2. Joint Tenancy

   • Tenants own property equally.
   • Features the "right of survivorship" (interest passes to surviving co-owners upon death).
   • Cannot be willed; avoids probate.
   • Corporations cannot hold joint tenancy because they cannot die.
   • Joint tenants are not liable for the debts of deceased co-tenants.
   • Requires clear conveyance documents.
   • Allows sale, mortgage, or transfer of interest without other tenants.
   • Four Unities: Time, Title, Interest, Possession.
     • Memory Tip: "TTIP" or the word "to take."
   • Terminated if any unity is destroyed.
   • Example: If a joint tenant sells their share, the buyer becomes a tenant in common.

3. Community Property

   • Pertains mainly to husband and wife.
   • Property acquired during marriage is jointly owned.
   • Laws vary by state.
   • Ownership is irrespective of whose name is on the title.

Additional Tips

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