In Real Estate, there are three main ways that property can be owned. If you are an owner of a property, you need to understand these three significant ways to hold property ownership.
The three property ownership types include that one owner owns the property. The second type is a property co-owned by several or two individuals. Usually, married couples are considered co-owners of the property. The third way is the property is in a trust, and the trust owns the property though the trustee would still have significant control over the property.
Table of Contents
- Real Estate Maybe Owned By One Owner Or In Severalty
- Real Estate Maybe Co-Owned By More Than One Owner
- Real Estate Maybe Owned By A Trust
- Related Questions
Real Estate Maybe Owned By One Owner Or In Severalty
One single owner can own real estate, also known as “Severalty.” Severality means that one person or a single corporation owns the entire property.
The word “severalty” means that the sole owner or the one person who owns the property is severed or cut off from other owners; in other words, that one owner has all the rights to the property.
Severalty is not a term used that often, but it is a legal term for Real Estate, so it is essential to understand what it means. Severalty means that the land is owned by one person or corporation.
Here are some essential aspects of single ownership or severality:
- One Real Estate Title – One owner or a single corporation holds the real estate title. There are no other owners who do not need to share any of their legal property or other rights.
- One Bundle of Rights – The single property owner has the entire bundle or rights in Real Estate, which include:
- Right to use the property in a lawful manner
- Right to sell the property
- Right to transfer property as a gift
- Right to restrict it with mortgage
- Right to lease the property
The main point with a single owner is that the owner controls the entire property and has the whole bundle of rights associated with it. They do not need to share that with anybody else.
Real Estate Maybe Co-Owned By More Than One Owner
Co-owners may also own real Estate. Co-owners are when multiple owners hold titles in common. They each possess the property.
Here are a few things about co-ownership of property:
- Upon The Death Of An Owner, Their Share Is Part Of The Estate – When an owner dies, their share becomes part of the probate estate.
- Rights Depend On Co-ownership – When more than one owner is listed on a deed, each owner has specific rights to the property. What kinds of rights will depend on the type of co-ownership.
- Married Couples Are Co-owners – Married couples are considered co-owners, but there are special rights attached to their ownership. Martial rights can also depend if the state is a community property state or a common law state.
A critical aspect of co-ownership is that somebody else can inherit the property when the co-owner dies. Usually, when one of the spouses dies, the property goes to the other spouse.
Divorce – Community and Common Property Law States
In the case of a divorce, the property has to be dealt with, and how it is dealt with can be different according to if you are divorcing in a community property state or a common law state.
In a Community Property State, the spouses will share ownership of anything purchased, acquired, or paid for during their marriage, no matter who uses or pays for the property. It does not matter whose name is on the title, as both spouses share in the property.
In a Common Law state, the spouse may not always be considered joint owners if the property is not listed under both spouses’ names. It means that partners can keep assets or debts of their own. It can also change who gets what in the divorce or who gets what property upon death.
Divorce and property can and usually is quite messy. If you are getting a divorce and are unsure about the law, you should talk to a qualified lawyer for your state and find out what laws are relevant. Different states may have other laws and requirements.
Real Estate Maybe Owned By A Trust
A trust can own a property. However, as a property trustee, you can have significant control over the property and what happens to it after you die. The trustee of the property has substantial rights.
Sometimes having property in a trust is a tax advantage; understanding if it would be an advantage for you, you should talk to an attorney specializing in trusts.
When you are the property owner, it is good to understand which type of property you own or how your ownership of the property is. Whether you are the sole owner, co-owner, or the property is a trust, these three types of property ownership are essential because each can have different meanings.
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Related Questions
What Happens If You Build On An Easement?
Usually, you can build on an easement as long as it does not interfere with its purpose. You should seek permission from the person with the easement to ensure there is no issue with the easement and what the easement is intended. If unsure, you can also seek legal or other professional advice.
By clicking here, you can read more about What Happens If You Build On An Easement?
Who Should Pay Property Tax, Tenant Or Landlord?
A landlord has a legal burden to pay the property tax and not the tenant. Most landlords will include the property tax cost within the rental amount they are charging. There are also several other things that tenants should not have to pay for. The property taxes are assessed upon the property’s value, so if the property value goes up, your rental may also go up to reflect the increased property tax.
By clicking here, you can read more about Who Should Pay Property Tax, Tenant Or Landlord?
