Cali Re - Chp 3 Ownership Of Real Property

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Fee Simple Absolute

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The maximum possible estate or right of ownership of real property, continuing forever.

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Life Estate

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Any estate in real or personal property that is limited in duration to the life of its owner or the life of some other designated person.

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Reversion or Remainder

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The right of future possession and use by the grantor of a life estate.

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condition subsequent

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A fee simple estate, may be qualified by a ........ ........ . This means that the new owner must not perform some action or activity. The former owner retains a right of reentry so that if the condition is broken, the former owner can retake possession of the property through legal action.

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concurrent ownership .

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Ownership by two or more persons at the same time, such as joint tenants, tenants by the entirety, tenants in common or community property owners.

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tenancy in common

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A form of concurrent ownership of property between two or more persons, in which each has an undivided interest in the whole property. This form is frequently found when the parties acquire title by descent or by will.

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joint tenancy

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An estate or unit of interest in real estate that is owned by two or more natural persons with rights of survivorship. The basic idea of a ........ ......... is unity of ownership; title is held as though all owners collectively constituted one person.

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partition

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Co-tenants who wish to terminate their co-ownership may file an action in court to ........ the property. ......... is a legal way to dissolve the relationship when the parties do not voluntarily agree to its termination.

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Partnership

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An association of two or more individuals who carry on a continuing business for profit as co-owners. Under the law a partnership is regarded as a group of individuals rather than as a single entity.

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general partnership

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In a ....... partnership, all the partners participate in the operation and management of the business and share full liability for business losses and obligations.

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limited partnership

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Consists of one or more general partners plus limited partners. The business is administered by the general partners and funded, for the most part, by limited or silent partners. Each limited partner can be held liable for business losses only to the extent of his or her investment

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tenancy in partnership

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Ownership by two or more persons, acting as partners, of property held for partnership purposes.

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sole proprietorship

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A method of owning a business in which one person owns the entire business and reports all profits and losses directly on his or her personal income tax return.

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Corporation

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An entity or organization, created by operation of law, whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until it is dissolved according to legal procedures.

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Trustee

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One who holds property in trust for another as a fiduciary and is charged with the duty to protect, preserve and enhance the value and the highest and best use of the trust property.

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Trustor

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The person who creates a trust and gives the instructions to the trustee.

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testamentary trust

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A trust established by a will.

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living trust

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An arrangement in which a property owner (trustor) transfers assets to a trustee who assumes specified duties in managing the asset. After payment of operating expenses and trustee's fees, the income generated by the trust property is paid to or used for the benefit of the designated beneficiary.

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limited liability company (LLC)

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An ..... combines features of limited partnerships and corporations. The members of an ........ enjoy the limited liability offered by a corporate form of ownership and the tax advantages of a partnership. In addition, the ...... offers flexible management structures without the complicated requirements of S corporations. (See corporation, partnership)