A condition where complete real estate ownership is impaired by unsettled claims and liens, which may prevent an owner from selling the property.
A Conditional Estate, also known as Fee Simple Defeasible, is a type of ownership where the owner's rights may be revoked upon the occurrence or non-occurrence of a particular event.
Conduit tax treatment allows income to pass through an entity without additional taxation, making certain entities preferred vehicles for real estate ownership as they distribute income and losses directly to their owners, maintaining the earnings' nature.
A cooperative, or co-op, is a type of corporate ownership of real property where stockholders of the corporation are entitled to use certain dwelling units or other spaces. Special income tax laws allow tenant stockholders to deduct their share of interest and property taxes paid by the corporation.
A Declaration of Restrictions is a set of restrictions filed by a subdivision or condominium developer, specifying rules that must be followed by property owners to maintain uniformity and uphold property values.
Divided interest refers to partial ownership interest in a property, where rights or interests are split among different parties.
An Estate in Severalty, also referred to as Tenancy in Severalty, is a real estate ownership structure where a single entity, either an individual or a corporation, holds exclusive ownership of a property. This type of ownership means that the owner has the complete responsibility and control over the property, making all decisions independently.
Fractional interest refers to a way of owning real estate where the owner possesses a portion or 'fraction' of the total asset, typically involving less than complete control over the whole property. This form of ownership is common in scenarios where multiple parties share the rights and responsibilities associated with a single piece of real estate.
Freehold refers to an interest in real estate without a predetermined time span, giving the holder indefinite ownership and rights to the property.
In real estate, a 'Good Title' refers to the legal concept that a property owner holds legitimate, documented ownership free from any disputes or encumbrances that could invalidate or challenge their property ownership. This assurance ensures a smooth transfer of title during sales or transfers.
A hidden defect in real estate refers to any title defect that is not apparent from an examination of public records. These defects can significantly impact the rights of property ownership.
A Limited Liability Company (LLC) is an organizational form recognized in many states, offering limited liability protection to its owners and potential tax advantages of a partnership, making it an attractive option for real estate ownership.
Ownership form methods influence various aspects of real estate management including income tax, estate tax, continuity, liability, survivorship, transferability, disposition at death, and bankruptcy.
Ownership in severalty, also known as tenancy in severalty, is a form of real estate ownership where a single entity holds sole title to a property. This arrangement provides the owner with exclusive rights and control over the property, without interference from others.
A Real Estate Operating Company (REOC) is a business entity engaged in the direct ownership, operation, management, and development of real estate properties. Unlike Real Estate Investment Trusts (REITs), REOCs do not necessarily have to distribute a significant portion of their earnings as dividends and are not subject to the same regulatory requirements.
Survivorship is the right of a joint tenant or tenants to maintain ownership rights following the death of another joint tenant, preventing heirs of the deceased from making claims against the property.
Tacking, in the context of real estate, refers to the process of adding successive periods of possession together to establish a continuous period required for a claim of adverse possession.
Tenancy for life, often referred to as a life estate, is a form of property ownership where one person (the life tenant) has the right to use and benefit from a property for the duration of their lifetime. Upon the death of the life tenant, the property passes to another party known as the remainderman or reversionary interest holder.
Tenancy in Common (TIC) represents a form of ownership in real estate where two or more individuals hold an undivided interest in the entire property, without Right of Survivorship, enabling them to independently convey their respective shares.
Tenancy in Severalty refers to the ownership of property by a single individual or legal entity. This format of ownership allows the owner full control without the need to collaborate with co-owners or partners.
Tenure in land refers to the mode in which a person holds an estate in lands. This includes various forms such as fee simple ownership and leasehold estates.
Title defect refers to any issue or claimant that challenges the legal ownership of a property, preventing the owner from presenting a clear or marketable title. These defects can arise due to various reasons such as missing signatures on the deed, current liens, or interruptions in the title records.
Title search is an examination of public records to determine the ownership and encumbrances affecting real property. It is an essential step in the purchase of real estate to ensure the buyer receives clear title to the property.
An unencumbered property is a real estate asset with a free and clear title, meaning there are no claims, liens, or restrictions by any third party. It signifies full ownership by the titleholder without any existing obligations such as mortgages, vendor liens, mechanic’s liens, or tax liens.
