2011©Cengage Learning. All Rights Reserved.

Joint Ownership 2011©Cengage Learning. All Rights Reserved.

CO-OWNERSHIP Types  joint tenancy  tenancy in common  Community property  community property with right of survivorship  tenancy in partnership Nature of Co-ownership 2011©Cengage Learning. All Rights Reserved.

JOINT TENANCY Ownership of property by two or more individuals with right of survivorship. On death, the interest of the deceased joint tenant vests with the surviving joint tenants. 2011©Cengage Learning. All Rights Reserved.

Survivorship The right of surviving joint tenants to receive the decedent’s interest in the property, free of probate. Any inclusion of joint tenancy property in a will is meaningless &of no force and effect. All liens against the deceased joint tenant’s interest in property is extinguished on death. To be marketable decedent’s interest must be removed from the public records. 2011©Cengage Learning. All Rights Reserved.

Severance When one joint tenant transfers his share, the grantee takes title as tenant in common to the other joint tenants. The remaining joint tenants (if there are more than one) continue to hold among themselves in joint tenancy. During the lifetime of the joint tenancy it can easily be severed at the whim and will of any joint tenant 2011©Cengage Learning. All Rights Reserved.

Four Unities The creation of a joint tenancy required the existence of the four common-law unities:  Title  Time  Interest  Possession. California has relaxed the requirement. 2011©Cengage Learning. All Rights Reserved.

TENANCY IN COMMON Ownership by two or more people without the right of survivorship. Rights of Tenants Right to Possession Right to Contribution Right to Sell and Mortgage 2011©Cengage Learning. All Rights Reserved.

Common Problems 1. Unanimous consent to sell. 2. Unanimous consent to mortgage. 3. Unanimous consent on major decisions. Solution: The Cotenancy Agreements 2011©Cengage Learning. All Rights Reserved.

COMMUNITY PROPERTY California is one of 8 community property states in the nation. Originated in Mexican law. Husband and wife are like partners. Property acquired during marriage by the labor or skill of one of them belongs to both. They are equal partners. 2011©Cengage Learning. All Rights Reserved.

Domestic Partnerships Two adults of the same sex registered as domestic partners with the Secretary of State. Seniors of the opposite sex. The Family Law Code says domestic partners shall have “the same rights, protections, and benefits, and shall be subject to the same responsibilities, obligations, and duties” and traditional spouses that are married. 2011©Cengage Learning. All Rights Reserved.

Management & Control Before 1977, the husband had management and control over the community property. Since 1977, both spouses have generally had equal rights over the community property. 2011©Cengage Learning. All Rights Reserved.

Separate Property Any property owned before marriage or acquired by one spouse during marriage by gift or inheritance is considered separate property. The law presumes that any property not held before marriage or acquired during marriage by gift or inheritance is community property. 2011©Cengage Learning. All Rights Reserved.

Division of Community Property Dissolution of Marriage Death Secretive Transfers 2011©Cengage Learning. All Rights Reserved.

COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP July 2001, California created a new form of property ownership between spouses called community property with right of survivorship. To create this new form of ownership, the spouses must sign a deed that includes the words “community property with right of survivorship.” 2011©Cengage Learning. All Rights Reserved.

OTHER FORMS OF JOINT OWNERSHIP General Partnerships Limited Partnership Joint Venture Corporations Subchapter-S Corporation Limited Liability Company Syndications Real Estate Investment Trusts 2011©Cengage Learning. All Rights Reserved.

Condominiums Cooperatives Common Interest Developments 2011©Cengage Learning. All Rights Reserved.

REAL ESTATE SYNDICATIONS Nature of Syndications Regulations for Syndicators Regulated by the Department of Corporations Recession for Unregistered Securities California Regulation 2011©Cengage Learning. All Rights Reserved.

Typical Syndication Process Public and Private Syndication Tie Up the Property Prepare a Private Placement Memorandum Obtain Securities Exemption or Qualification Find Investors & Execute Subscription Agreements Form the LLC or LP Obtain Financing & Assign Deposit Receipt Close Escrow 2011©Cengage Learning. All Rights Reserved.