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.

2 ©2013 Kaplan, Inc. 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

3 ©2013 Kaplan, Inc. PRODUCTGIVEN BYRECEIVED BY DeviseDevisorDevisee GrantGrantorGrantee LegacyLegatorLegatee LeaseLessorLessee MortgageMortgagorMortgagee OfferOfferorOfferee OptionOptionorOptionee SubleaseSublessorSublessee TrustTrustorTrustee 8 Forms of Real Estate Ownership

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

5 ©2013 Kaplan, Inc. 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)

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

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

11 ©2013 Kaplan, Inc. 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

12 ©2013 Kaplan, Inc. 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.

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

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

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