Chapter 8 Forms of Real Estate Ownership Many

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

Chapter 8 Forms 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

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 © 2013 Kaplan, Inc. 2

8 Forms of Real Estate Ownership © 2013 Kaplan, Inc. PRODUCT GIVEN BY RECEIVED

8 Forms of Real Estate Ownership © 2013 Kaplan, Inc. PRODUCT GIVEN BY RECEIVED BY Devise Devisor Devisee Grantor Grantee Legacy Legator Legatee Lease Lessor Lessee Mortgagor Mortgagee Offeror Offeree Optionor Optionee Sublease Sublessor Sublessee Trustor Trustee 3

8 Forms of Real Estate Ownership • Forms of ownership – Severalty – Co-ownership

8 Forms of Real Estate Ownership • Forms of ownership – Severalty – Co-ownership © 2013 Kaplan, Inc. 4

8 Forms of Real Estate Ownership • Forms of co-ownership – Tenancy in common

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) © 2013 Kaplan, Inc. 5

8 Forms of Real Estate Ownership © 2013 Kaplan, Inc. 6

8 Forms of Real Estate Ownership © 2013 Kaplan, Inc. 6

8 Forms of Real Estate Ownership © 2013 Kaplan, Inc. 7

8 Forms of Real Estate Ownership © 2013 Kaplan, Inc. 7

8 Forms of Real Estate Ownership © 2013 Kaplan, Inc. 8

8 Forms of Real Estate Ownership © 2013 Kaplan, Inc. 8

8 Forms of Real Estate Ownership • Trusts – Parties • Trustor • Trustee

8 Forms of Real Estate Ownership • Trusts – Parties • Trustor • Trustee • Beneficiary – Living and testamentary trusts – Land trusts © 2013 Kaplan, Inc. 9

8 Forms of Real Estate Ownership • Ownership by business organizations – Partnerships •

8 Forms of Real Estate Ownership • Ownership by business organizations – Partnerships • General • Limited – Corporations – Limited liability companies (LLCs) © 2013 Kaplan, Inc. 10

8 Forms of Real Estate Ownership • Condominiums – – – Fee simple ownership

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 © 2013 Kaplan, Inc. 11

8 Forms of Real Estate Ownership The owner of unit 4 owns that unit,

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. © 2013 Kaplan, Inc. 12

8 Forms of Real Estate Ownership • Cooperatives – – Proprietary lease Shareholder ownership

8 Forms of Real Estate Ownership • Cooperatives – – Proprietary lease Shareholder ownership Operation and administration Tax advantages © 2013 Kaplan, Inc. 13

8 Forms of Real Estate Ownership • Townhouses – Common walls – Fee simple

8 Forms of Real Estate Ownership • Townhouses – Common walls – Fee simple ownership – Common elements © 2013 Kaplan, Inc. 14

8 Forms of Real Estate Ownership • Time-shares – – Time-share estate Promotion or

8 Forms of Real Estate Ownership • Time-shares – – Time-share estate Promotion or sale—in Georgia Time-share use Membership camping © 2013 Kaplan, Inc. 15