California Real Estate Principles 10 1 Edition Chapter

California Real Estate Principles, 10. 1 Edition Chapter 6 Part II: Estates and Methods of Holding Title © 2016 On. Course Learning

Owner’s Rights

Fee Simple Estate • Fee Simple Absolute: – No private restrictions – The HIGHEST form of ownership • Fee Simple Qualified (Defeasible) – Title is subject to private restrictions NOTE: All property subject to governmental controls

Life Estate I grant 123 Elm Street to my mother for her life, and after her death, to the Real Estate Scholarship Fund Foundation. Mrs. Smith REMAINDER

Life Estate I grant to my land to my mother for her life, and upon her death the land reverts to my estate. Mr. Kelly REVERSION

Life Estate I grant my home to the Real Estate Scholarship Endowment Fund, but I reserve the right of possession to my home for the rest of my life. Mr. J. R. Smith RESERVATION

Tenant’s Rights

One Owner

Taking Title When Unmarried • Title Taken As: – “A Single Man” or “A Single Woman” • Never Been Married – “An Unmarried Man” or – “An Unmarried Woman” • Was Married • Not Married When Acquired – “Sole and Separate property” • Are Married • Acquired During Marriage • Keeping Separate From Marriage Funds

• Multiple Owners

Joint Tenancy • • • Right of survivorship Equal shares for all joint tenants No probate. Cannot will the title interest Surviving tenant gets title free of debts of deceased Four unities must exist: 1. T ime 2. T itle 3. I nterest 4. P ossession

Joint Tenancy C sells A B to D A D C A & B are still joint tenants D is a Tenant in Common Right of Survivorship A B C dies A B

• No right of survivorship. Can leave property by a will • Involves Probate. Can convey without co-owner’s permission • Equal right of possession. Must pay percentage share of expenses • Each owner may sever interest without permission of others • Undivided interest in the whole • Example: A 1/3, B 2/3 or A ¼, B ¼, C ½ C dies A B C’s Heirs Tenancy in Common

Tenancy in Common • Multiple (2+) Owners • Inheritable Interests • Equal Right of Possession

Characteristics of Community Property 1. 2. 3. 4. 5. Property acquired during valid marriage EXCEPTIONS: -property acquired before marriage -property acquired during marriage by gift or inheritance, if not commingled Equal Co-Managers, Both signatures required to sell or lease Each spouse has the right to will to whomever, unless they agree to the right of survivorship No probate if left to surviving spouse

Community Property • Can ONLY be with held with a spouse or registered domestic partner • Real property acquired during the marriage or registration • If no title is stated, the Court presumes all property is Community Property • Either party may separately will their share • Requires both signatures to sell or lease • Injured spouse has one year to void action • Limited probate proceedings for spouse, no probate if community property with right of survivorship • Undivided interest. Equal management, control, rights, ownership and possession

Community Property husband wife Husband dies intestate husband wife Husband dies wills all of his property to someone other than wife ? wife

SEPARATE PROPERTY • Property owned before marriage • Gift or inheritance during marriage • Sale proceeds/profit from sales of separate property • COMMINGLED becomes community property

Tenancy in Partnership • • Two or more persons join for a business Rights not assignable Partners are jointly and severally liable General partner – General partner is responsible for debts – Unlimited liability for the business debts • Limited partner – Only responsible up to the amount invested • Frequently used for real estate syndicates