2. © 2009 South-Western, Cengage Learning

3.  TENANTS-IN-COMMON  law presumes tenant-in-common unless clearly otherwise  always inheritable, mortgageable or may be conveyed  may have different percentage of ownership  JOINT TENANCY  right of survivorship  Massachusetts law requires clear identification in deed  requires 4 unities: possession, interest, time and title

4. © 2009 South-Western, Cengage Learning  TENANCY-BY-THE-ENTIRETY clear identification in deed required by Massachusetts law applies only to married couple (while legally married) right of survivorship no right of partition neither can sell, mortgage or lease separately neither spouse can use a will to convey to third party automatic conversion to tents-in-common upon divorce terminated only by death, divorce or joint conveyance principal residence cannot be liened by creditor of one spouse does not protect for individual debts for necessaries

5. © 2009 South-Western, Cengage Learning  LIMITED LIABILITY PARTNERSHIP (LLP) limited liability is granted to all partners  LIMITED PARTNERSHIP no liability to creditors for limited partners beyond investment limited partners cannot participate in direct management

6. © 2009 South-Western, Cengage Learning  TRUSTS trusts can own, manage, convey, mortgage real property beneficial owners own personal, not real property  CORPORATIONS disadvantage of double taxation Subchapter S corporation and limited liability company (LLC) provide limited liability of corporation but avoid double taxation

7. © 2009 South-Western, Cengage Learning CONDOMINIUMS IN GENERAL fee simple interest plus undivided interest in common areas condominium unit receives individual real estate tax bill common areas not subject to direct real estate taxes residential, commercial, industrial, parking spaces, marina etc.

8. © 2009 South-Western, Cengage Learning  CONDOMINIUM DEEDS (2 deeds) master deed and individual condominium unit deed  CONDOMINIUM DOCUMENTS includes master deed, declaration of trust, bylaws, floor plans and usually a condominium budget declaration of trust/bylaws create condominium association

9. © 2009 South-Western, Cengage Learning  PERCENTAGE OF OWNERSHIP IN COMMON AREAS unit deed states % of undivided interest in common areas determines % of budget as well as size of vote % is set at inception based upon initial relative values after original % determined, very difficult to change  INSURANCE (2 policies) master policy - part of condominium association budget unit policy covers unit improvements/personal property

10. © 2009 South-Western, Cengage Learning  LEASEHOLD CONDOMINIUMS condominium on leased land (minimum term 60 years)  COMMERCIAL CONDOMINIUMS quite different rules and requirements than residential 10% or less residential floor space, classified commercial  LIENS AND LIABILITY unit owners liable for obligations as per % of ownership

11. © 2009 South-Western, Cengage Learning  takes precedence over all liens, except taxes  superior to first mortgage, only up to 6 months  includes collection costs and attorney fees  does not include special assessments, late charges, penalties  not prior to mechanics’ liens

12. © 2009 South-Western, Cengage Learning statement of all obligations of unit owner by association includes current assessment & any planned assessments provide in 10 days with reasonable fee (except mortgagee) content of 6(d) certificate binding upon association

13. © 2009 South-Western, Cengage Learning  PROCESS (applies to residential only) minimum code - local communities may adopt other rules applies also to cooperative conversion timetable begins with “Notice of Intent to Convert” to tenant notice includes actual limit of occupancy term and tenant purchase rights

14. © 2009 South-Western, Cengage Learning  TENANT RIGHTS  tenant right to purchase - lowest public price - 90 days or more  special rules for handicapped, over 62 or limited income  right of tenancy 1 year from “Notice”; 2 years for special rules  notice is good for 1 year (thereafter, new notice required)  up to $750 moving expense ($1,000 for special rules)  limitation on rental increases during notice period  required moving assistance for special rule tenants (similar accommodations at similar rental in same city or town or notice period may extend additional 2 years)

15. © 2009 South-Western, Cengage Learning minimum of three units name of association must include “cooperative” maintenance costs shared collectively stockholders share one mortgage and one real estate tax bill stock in cooperative corporation includes proprietary lease cooperative ownership is shared financial responsibility shared financial responsibility allows owner selectivity in sales financing difficult but Massachusetts lenders allowed to make conventional real estate mortgage loans secured by cooperative corporation stock and proprietary lease

16. © 2009 South-Western, Cengage Learning  TIME-SHARES IN MASSACHUSETTS time-shares considered real estate similar to condominium introducing element of time minimum of 12 time-share units public offering statement to prospective buyers estate may be fee simple or estate for years

17. © 2009 South-Western, Cengage Learning  TIME-SHARES IN MASSACHUSETTS - continued all contracts have 3-day right of rescission prizes or inducements must state value and be clearly defined no right of partition project manager must be MA real estate licensee fractional ownership falls within legal requirements of time-share

18. KEY TERMS © 2009 South-Western, Cengage Learning 6(d) certificate unit deed concurrent estate condominium conversion condominium declaration condominium documents condominium super lien cooperative co-ownership fractional ownership joint tenancy limited-liability company limited-liability partnership limited partnership master deed percentage of ownership proprietary lease tenancy-by-the-entirety tenancy-in-common time-share