Chapter 8 Forms of Real Estate Ownership Many people visualize single-family homes when they think...

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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.

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

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

• Forms of ownership– Severalty– Co-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)

• Trusts– Parties

• Trustor• Trustee• Beneficiary

– Living and testamentary trusts– Land trusts

• Ownership by business organizations– Partnerships

• General• Limited

– Corporations – Limited liability companies (LLCs)

• Condominiums– Fee simple ownership and Condo ownership– Creation of a condo (in Georgia)– Common elements in a condo– Owning a Condo– Operation and administration

The owner of unit 4 owns that unit, plus an undivided one-fifth share of the elevator, lobby, grounds, and structure.

• Cooperatives– Proprietary lease– Shareholder ownership– Operation and administration– Tax advantages

• Townhouses– Common walls– Fee simple ownership– Common elements

• Time-shares– Time-share estate– Promotion or sale—in Georgia– Time-share use– Membership camping

Chapter 8 Forms of Real Estate Ownership Many people visualize single-family homes when they think...

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