Property Ownership Study Guide

Real Property vs. Personal Property

Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.

Joint Tenancy

Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.

Tenancy in Common

Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.

Tenancy by the Entirety

Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.

Community Property

Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.

Condominium Ownership

Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.

Cooperative Ownership

In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.

Fee Simple Absolute

Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.

Leasehold Estate

A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.

Life Estate

A life estate is a freehold estate that grants ownership rights for the duration of someone's life.

Freehold Estate

A freehold estate represents ownership of real property with an indefinite duration.

Water Rights: Riparian and Littoral

Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).

Forms of Ownership: Community Property

Community property is a system where property acquired during a marriage is owned equally by both spouses.

Types of Estates: Freehold vs. Leasehold

A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.

Bundle of Rights

The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.