Modern Real Estate Practice in Illinois Eighth Edition Chapter 8: Forms of Real Estate Ownership ©2014 Kaplan, Inc.

Forms of Ownership Ownership in Severalty Co-Ownership –Tenancy in Common No right of survivorship –Joint Tenancy Right of survivorship Creating joint tenancies The four unities –Tenancy by the entirety Community property

Joint Tenancy - Unities Time Title Interest Possession

Community Property Community property is owned by both spouses Separate property is owned by each spouse Community property is not recognized in Illinois Illinois uses marital property, which is similar to community property

Trusts Living and testamentary trusts Land trusts Real estate investment trusts (REITs)

Parties To A Trust Trustor – creates the trust Trustee – holds title to the assets Beneficiary – benefits from the trust

Ownership of Real Estate by Business Organizations Partnerships –General partnerships –Limited partnerships Corporations –S Corporation Syndicates and Joint Ventures Limited Liability Companies (LLCs)

Condominiums, Cooperatives, Town Houses, and Time-Shares Condominium Ownership –The owner of each unit holds a fee simple title to the unit and a specified share of the undivided interest in the common elements as a tenant in common Creation of a condominium Operation and administration Assessments

Condominiums, Cooperatives, Town Houses, and Time-Shares Cooperative Ownership –A corporation holds title to the land and building and offers shares of stock to prospective tenants Operation and management Advantages

Condominiums, Cooperative, Town Houses and Time-Shares Town House Ownership -a cross between single-family houses and apartments -each unit and lot is vested in the individual owner -owns fractional interest in the common areas

Condominiums, Cooperative, Town Houses and Time-Shares Time-share Ownership –Permits multiple purchasers to buy interests in real estate, usually a resort property. Each purchaser receives the right to use the facilities for a certain period of time.