Term
Severalty Ownership- Tenancy in Severalty
(Types of Ownership) |
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Definition
1 Owner= Sole ownership
A corporation can own property and be severalty, a corp. is considered 1 Entity.
"Severed or separated from anyone else" |
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Term
Concurrent- Co Owners
(Types of Ownership) |
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Definition
| More than one owner can be in a form of tenancy in common, tenancy by entirety, community property, tenancy in partnership,a trust, a condominium or a cooperative. |
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Term
Tenancy in Common
(Concurrent)
(Types of Ownership) |
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Definition
-Fewest restrictions.
-Recognized in GA for husband and Wife
-Each holds separate title
-Can sell/mortgage/will/transfer without consent from other members.
-Co-owners do not own any specific portion of the physical property. Co-owners own a specific interest in the property as a whole (undivided).
-Equal rights of possession
-Interests do not have to be equal (ex. Al 50%, Bill 30%, Rob 20%)
-Upon death, passed on to heirs INHERITABLE (ex. Al 50%, Bill 30%, Rob 20%.....Rob Dies, Robs 20% goes to his heirs.
- Can be created at any time (ex. A, B and C each own 1/3, C sells to D, D will become a co-tenant to A and B as if D was always there. |
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Term
Joint Tenancy
(Concurrent)
(Types of Ownership) |
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Definition
-More strict
-Interests are equal
-Joint Tenants own a single estate
-Only 1 title and estate is shared with each co-owner
-Right of Survivorship
-NOT INHERITABLE
-Upon death, interest automatically passed on to remaining joint tenants (ex. 1/3 interest of 50 acres each Jimmy, Bob, Chuck- Chuck dies 1/2 interest each to Jimmy and Bob- Jimmy dies Bob becomes sole owner/severalty ownership
-Must be acquired at the same time therefore anytime a new buyer is introduced a new contract and closing must be performed in order for it to continue as a Joint Tenancy with the new buyer OR it if new contract not done then all owners become tenants in common. |
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Term
PITT (acronym)
(Joint Tenancy)
(Concurrent)
(Types of Ownership) |
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Definition
Most states require in order to create a joint tenancy, the unities of Possession, Interest, Time, and Title must be present.
Possession-Each joint tenant owns as a whole
Interest- Must be equal
Time- must acquire interest at the same time
Title- Only 1 title |
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Term
Partition Suit
(Concurrent)
(Types of Ownership) |
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Definition
| When agreement on a method for dissolving the tenancy cannot be reached, one or more of the co-tenants without consent of the others, can file a partition suit in court in both joint tenancy and tenancy in common. |
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Term
Tenancy By the Entirety
(Concurrent)
(Types of Ownership) |
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Definition
-Only applies to husband and wife.
-NOT recognized in GA
-Right of survivorship
-Cannot sell or partition suit
-Identical to a joint tenancy
-requires PITT
- If divorce occurs, they become tenants in common
-Creditor cannot force sale of half the property to satisfy either spouse's personal or business debts |
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Term
Community Property
(Concurrent)
(Types of Ownership) |
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Definition
-Applies to married couples NOT ONLY HUSBAND AND WIFE (LGBTQ community)
-NOT Recognized in GA
-each spouse owns 1/2 interest
-Must join in signing docs when community property is sold, mortgaged or leased
-Property acquired by either spouse prior to marriage or acquired during marriage by gift or inheritance is NOT included. |
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Term
Partnership
(Concurrent)
(Types of Ownership) |
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Definition
| An association of two or more people who join forces for business purposes. Tenancy in partnership |
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Term
General Partnership
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
-Jointly and severally(individually) liable for the partnership obligations.
-Partner is not liable for the personal financial obligations of other partners and the interest a partner has in the business cannot be sold by a creditor to satisfy a personal debt.
-No partner can obligate the partnership to sell/mortgage/ lease or otherwise convey any legal interest in partnership property without the consent of the other partners.
-Fully liable for the debt in whole |
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Term
Limited Partnership- Silent Partner
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
-No Managing authority
-Essentially just investors and have no management involvement. Their liability is limited to their investment.
Joint Venture: a general or limited partnership formed to complete a particular business project with not intent to establish a permanent relationship |
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Term
Limited Liability Company
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
-Investors are called members NOT stockholders and their profits are not taxed at the corporate level
-Management responsibilities vest in all members
-DOES Not have eternal life, when all members die the LLC ends
-Temp. partnership build to sell |
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Term
Trusts
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
when a property owner (Trustor) places the title to the property in the hands of someone else (trustee) for the benefit of a third party (beneficiary).
Trust is created through a written instrument that may be a formal trust agreement, will, or a deed. |
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Term
Testamentary Trusts
(Trusts)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
Created by will after the owners death.
ex. a testator might choose to leave the estate in the hands of a capable trustee because the heir is a minor or a person unaccustomed to business decisions |
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Term
Living Trusts
(Trusts)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
| created by agreement during the trustors lifetime, possibly as a way of avoiding probate costs or minimizing tax liabilities. Trustor may retain the right to manage properties placed in the trust, naming the beneficiaries who will automatically acquire title upon the trustor's death |
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Term
Land Trusts
(Trusts)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
| usually created by a trustor who will also be the beneficiary and who will retain control over management of the property. |
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Term
Real Estate Investment Trusts (REIT)
(Trusts)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
| Minimum of 100 investors (beneficiaries). Trust is managed by a board of trustees who invest in real property or in a mortgage laons |
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Term
Syndicates
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
| Not a legal form of ownership but a descriptive term for a group of individuals or firms who get together for the purpose of investing or dealing in real estate. |
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Term
Condominium Ownership
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
Allows multiple owners to hold fee simple title to their individual units.
OFFICE BUILDINGS AND PARKING GARAGES/LOTS ARE CONDOMINIUM OWNERSHIP |
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Term
Master Deed
(Condominium Ownership)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
| Principal conveyance document used to create the condominium. Includes complete legal description and thoroughly describes the entire condominium entity |
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Term
Declaration
(Condominium Ownership)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
| Includes a complete description of each unit, the percent of interest in the common elements that attaches to each unit, a description of common areas and limited common areas, and a statement of permitted uses. |
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Term
Plat
(Condominium Ownership)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
| detailed site plan that includes plans and specifications for buildings to be constructed |
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Term
By-Laws- Ownership Association
(Condominium Ownership)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
-establishes the framework for the formation of a homeowners association that will have the responsibility for running the community
- Owners vote for the Ownership Association
-each owner is free to sell/mortgage/lease or make a gift of their unit
-Condo owners MUST abide by the covenants, conditions and restrictions (CC&R's) that are rules governing how common areas and individual units can be used.
-Developer MUST turn over management to an owners association when 80% of the units are sold or after 3 years from the date the declaration was recorded. |
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Term
Georgia Condominium Act
(By-Laws)
(Condominium Ownership)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
-Became law October 1975
-Requires extensive disclosures and allows the buyer of a new condominium unit a 7-DAY right of rescission ONLY applies to new condos when buying from developer to a new condo. |
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Term
Time Sharing
(By-Laws)
(Condominium Ownership)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
| Condo Ownership or interval ownership-an apartment is sold to multiple owners, each of whom owns it for just one period of the year (beneficial for clients that travel consistently) |
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Term
Georgia Timeshare Act
(By-Laws)
(Condominium Ownership)
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
-Passed in 1983 amended in 1995
-Defines and regulates timeshare programs located in GA and out-of-state properties sold within GA
-Requires the that developer of timeshare projects:
1.Provide purchaser with a public offering statement(written doc that discloses all material facts including details of the management and operation of the project as well as the right of rescission. The purchaser shall have 7 DAYS from receipt of the public offering statement to rescind without penalty.
2. Trust funds must be deposited into escrow
3. Sales agents, unless exempt bylaw, must be licensed as a real estate broker
4. Advertising must comply with the Fair Business Practices Act |
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Term
Cooperative Ownership
(Tenancy in Partnership)
(Concurrent)
(Types of Ownership) |
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Definition
-occurs when an existing or to-be-constructed building is owned in severalty by a non-profit corporation.
-Buy shares of stock in the corporation and with the stock they acquire a proprietary lease on the unit of their choice-this assures them of the right to use that apartment for as long as they own the stock or for the life of the corp.
-1 Large property tax bill
-1 Large mortgage payment
-Each occupant pays a proportionate share of these costs plus any other management expenses
-Default by one or more stockholders can increase the burden on the others
-transfer of the lease requires approval from the Board of Directors
-Does not own anything, they have to right to occupy ONLY
-Shares are inheritable but the board must approve the transfer
Ex. We all want to live in a neighborhood and legally exclude certain people, we all buy the neighborhood as a corporation for "business" and not housing purposes and now we can legally decide who gets to "buy stocks/shares(occupy) or live in the neighborhood
-Corps have more control |
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