Types of Real Estate Ownership
If you’re studying to take a real estate license exam, brushing up on the ways people can own real estate, individually and together, is a given. The following list goes through some of the most common types of ownership:
Tenancy in severalty: Although it may sound like more, this type of ownership is by a single person or a corporation, and not being married doesn’t have anything to do with it.
Tenancy in common: Equal or unequal undivided ownership between two or more people is what characterizes this type of ownership. If an owner dies, the deceased person’s share is conveyed to his or her heirs, not the other owners.
Joint tenancy: The four unities that must exist for this type of ownership to exist are
Interest: Each owner has the same interest.
Possession: All owners hold an undivided interest.
Time: All owners receive their interest at the same time.
Title: All owners acquire their interest with the same deed.
If one owner of a joint tenancy dies, that owner’s interest reverts to the other owners. This right of survivorship may vary by state.
Tenancy by the entirety: Available only to married couples, tenancy by the entirety means that property may not be sold without the agreement of both parties. The right of survivorship exists to the extent that if one spouse dies, his/her interest reverts to the other spouse.