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35 terms

Ch 3- Ownership

___________owned real estate is held by federal, state or local government entities for such things as schools, roads, parks, etc.
_____________ owned real estate may be held by one individual or entity or by more than one.
Advising buyers about what form of ownerhsip to use would be considered___________.
giving legal advice. **Rather advise the buyer to see advice from a lawyer who knows about real estate law about what form of ownership is required.
When an estate is owned by one person or a single legal entity such as a corporation, it's called __________ or _________.
severalty ownership OR sole ownership (it is NOT ownership by several people as the name might suggest-rather single ownership "severed" or "separated"
When two or more people simultaneously own rights in the same land, they are said to be ___________ or ______________.
co-owners or concurrent owners
In law the word ______________ refers to ppossession of lands and tenements (buildings)by any kind of right or title, not just to leaseholds.
tenancy **Tenancy and tenant as used in the chapter, refer to ownership and have nothing to do with rentals.
A form of concurrent ownership where co-owners hold an equal or unequal undivided interest without the right of survivorship is_______________.
tenancy in common (poses the fewest restrictions on the co-owners) **Each holds separate title (with a separate estate) to an undivided interest in the property.
In a tenancy in common situation, the ___________ do NOT have to be _________.
interests/ equal **The deed or will should specify what percentage each co-tenant owns.
In a tenancy in common situation, the tenants shares are _____________.
inheritable * passed on to person named in a will*
When co-tenants jointly own a single estate it's called _____________.
joint tenancy **there is only 1 title and CANNOT be inherited
A distinguishing characteristic of joint tenancy is __________ which is a right which allows a deceased co-owner's interest in property to pass to the surviving co-owners rather than to the estate of the deceased.
right of suvivorship
Any joint tenant can sell, lease, or mortgage a share without the ________, _________, or knowledge of the other joint tenant(s).
sell, lease or mortgage
For a joint tenancy to be created, all of the following must exist: ________, _________, ________, _________
possession/ interest/ time/ title
If any one of the four unities of joint tenancy is destroyed, the tenancy is ___________.
A joint tenancy might also end if one of the co-owner's interest is sold to ________________________
satisfy a judgement or mortgage lien
A ___________ is a legal action to divide or sell property held as tenancy in common or in joint tenancy. This legal procedure is available to co-tenants who are unable to mutally agree on an acceptable plan of division of sale.
partition suit
An old English common law principle that a husband and wife gbecome one perons and cannot own anything individually is called ____________. It is recognized by some states- NOT GEORGIA!!
tenancy by entirety
Tenancy by entirety differs from JOINT tenancy in 3 distinct ways:
1. exclusively for husbands and wives (become tenants in common if they divorce) 2.neither spouse can sell, mortgage or lease his/her interest without consent of the other (both signatures must be on any document) 3. a creditor cannot force sale of half the property to safisfy either spouse's peronal or buisness debts.
_______________ property is another form of co-ownership that applies only to married couples. GA doesn't recognize this law. Only 9 states do.
community (each spouse has an equal share in the interest)
2 types of partnerships in tenancy: ________ and __________
general and limited
A type of partnership which allows each partner to participate in the management of the business but holds the partners jointly and personally liable for obligations incurred by the partnership is a_______________.
general partnership
The __________________Act provides for the creation and operation of a general partnership by a partnership. This allows the partnership to own property, provided it operates under a registered trade name.
Uniform Partnership
The Uniform Limited Partnership Act allows in a limited partnership , one or more general partners to ___________________________
carry on the mangagement of the business and have the same obligations as in a general partnership. **the limited partners are essentially just investors
An L.L.C , a _________________, is a unique form of ownership not classified as a corporation, but an association similar to that of limited partnership. Management responsibilities are vested in its members ad members aren't personally liable for debts of the limited liability company.
limited liablity corporation **Members are NOT stockholders and profits are not taxed at the corporate level.
Unlike a corporation, an L.L.C doesn't have an _______________and can be dissolved by a predetermined _______________, by fulfillment of ____________, entry of decree of judicial ____________ upon application of a member
eternal life/ set time/events specified in the operation agreement, dissolution
A __________ is created when a property owner (the trustor) places the title to the property inthe hands of someone else (the trustee) for the benefirt of a third party (the ____________)
trust/ beneficiary
A ______________ trust is created by will after the owner's death. Testator might choose to leave the estate in the hands of a capable trustee because the heir is a minor/unaccustomed to business decisions.
A _____________trust is created by an agreement during the trustor's lifetime, possibly as a way of avoiding probate costs or minimizing tax liabilities.
A real estate investment trust (REIT) must have a minimum of _________ investors (beneficiaries) to qualify for certain income tax benefits.**Managed by a board of trustees who invest in real property or in mortgage loans
100 **REIT pays no income tax on profits as long as 90% of income is passed through to the beneficiaries
A __________is 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.
__________ ownership allows multiple owners to hold fee simple title to their individual units.
All other parts are shared and used in common with the other owners.
Horizontal property acts provide for the creation and protection of condominium ownership. these documents must be files by the developer:
master deed (principal conveyance)/ declaration(includes complete description of each unit, the % of interest in the common elements/ plat (detailed site plan)/ by-laws (establish the framework for the formation of a homeowners association)
Condo owners must abide by the ______________ (CC&R's) .( may not have pets or improvements must conform to certain standards)
covenants, conditions and restrictions
The Georgia Condominium Act (1975) requires extensive disclosures and allower the buyer of a NEW condo unit a ___________.
7 day right of rescission
Another form of concurrent ownership, a _____________, occurs when an existing or to-be-constructed building is owned in severalty by a non-profit organization.`