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.
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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
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Forms of Real Estate Ownership
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PRODUCT
GIVEN BY
RECEIVED BY
Devise
Devisor
Devisee
Grant
Grantor
Grantee
Legacy
Legator
Legatee
Lease
Lessor
Lessee
Mortgage
Mortgagor
Mortgagee
Offer
Offeror
Offeree
Option
Optionor
Optionee
Sublease
Sublessor
Sublessee
Trust
Trustor
Trustee
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Forms of Real Estate Ownership
• Forms of ownership
– Severalty
– Co-ownership
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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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Forms of Real Estate Ownership
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Forms of Real Estate Ownership
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Forms of Real Estate Ownership
©2013 Kaplan, Inc.
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Forms of Real Estate Ownership
• Trusts
– Parties
• Trustor
• Trustee
• Beneficiary
– Living and testamentary trusts
– Land trusts
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Forms of Real Estate Ownership
• Ownership by business organizations
– Partnerships
• General
• Limited
– Corporations
– Limited liability companies (LLCs)
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Forms of Real Estate Ownership
• Condominiums
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–
–
–
–
Fee simple ownership and Condo ownership
Creation of a condo (in Georgia)
Common elements in a condo
Owning a Condo
Operation and administration
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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.
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Forms of Real Estate Ownership
• Cooperatives
–
–
–
–
Proprietary lease
Shareholder ownership
Operation and administration
Tax advantages
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Forms of Real Estate Ownership
• Townhouses
– Common walls
– Fee simple ownership
– Common elements
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Forms of Real Estate Ownership
• Time-shares
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–
–
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Time-share estate
Promotion or sale—in Georgia
Time-share use
Membership camping
©2013 Kaplan, Inc.
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