Chapter 8 Forms of Real Estate Ownership Many people visualize single-family homes when they think...
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Transcript of Chapter 8 Forms of Real Estate Ownership Many people visualize single-family homes when they think...
Chapter 8Forms of Real Estate Ownership
Many people visualize single-family homes when they think of real estate ownership but the same issues apply to all types of property. Here is a multifamily residence—possibly a condominium, cooperative, or timeshare vacation home.
2©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Learning objectives– Identify the four basic forms of co-ownership– Describe the ways in which various business
organizations may own property– Explain how a tenancy in common, joint tenancy, and
tenancy by the entirety are created and how they may be terminated
– Distinguish cooperative ownership from condominium ownership
3©2013 Kaplan, Inc.
PRODUCT GIVEN BY RECEIVED BY
Devise Devisor Devisee
Grant Grantor Grantee
Legacy Legator Legatee
Lease Lessor Lessee
Mortgage Mortgagor Mortgagee
Offer Offeror Offeree
Option Optionor Optionee
Sublease Sublessor Sublessee
Trust Trustor Trustee
8 Forms of Real Estate Ownership
4©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Forms of ownership– Severalty– Co-ownership
5©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Forms of co-ownership– Tenancy in common– Joint tenancy
• Four unities: possession, interest, time, and title• Creating joint tenancy
• Terminating joint tenancy• Partition
– Tenancy by the entirety (not recognized in Georgia)• Married couples
• Termination: judgment sale, death, agreement, or divorce
– Community property (not recognized in Georgia)
6©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
7©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
8©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
9©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Trusts– Parties
• Trustor• Trustee• Beneficiary
– Living and testamentary trusts– Land trusts
10©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Ownership by business organizations– Partnerships
• General• Limited
– Corporations – Limited liability companies (LLCs)
11©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Condominiums– Fee simple ownership and Condo ownership– Creation of a condo (in Georgia)– Common elements in a condo– Owning a Condo– Operation and administration
12©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
The owner of unit 4 owns that unit, plus an undivided one-fifth share of the elevator, lobby, grounds, and structure.
13©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Cooperatives– Proprietary lease– Shareholder ownership– Operation and administration– Tax advantages
14©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Townhouses– Common walls– Fee simple ownership– Common elements
15©2013 Kaplan, Inc.
8 Forms of Real Estate Ownership
• Time-shares– Time-share estate– Promotion or sale—in Georgia– Time-share use– Membership camping