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Understanding Real Estate Ownership Types

Oct 27, 2024

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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