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Joint Ownership

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CO-OWNERSHIP

Types joint tenancy tenancy in common Community property community property with right of survivorship tenancy in partnership

Nature of Co-ownership

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JOINT TENANCY

Ownership of property by two or more individuals with right of survivorship.

On death, the interest of the deceased joint tenant vests with the surviving joint tenants.

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Survivorship The right of surviving joint tenants to receive

the decedent’s interest in the property, free of probate.

Any inclusion of joint tenancy property in a will is meaningless &of no force and effect.

All liens against the deceased joint tenant’s interest in property is extinguished on death.

To be marketable decedent’s interest must be removed from the public records.

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Severance

When one joint tenant transfers his share, the grantee takes title as tenant in common to the other joint tenants.

The remaining joint tenants (if there are more than one) continue to hold among themselves in joint tenancy.

During the lifetime of the joint tenancy it can easily be severed at the whim and will of any joint tenant

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Four Unities

The creation of a joint tenancy required the existence of the four common-law unities: Title Time Interest Possession.

California has relaxed the requirement.

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TENANCY IN COMMON

Ownership by two or more people without the right of survivorship.

Rights of Tenants Right to Possession Right to Contribution Right to Sell and Mortgage

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Common Problems

1. Unanimous consent to sell.

2. Unanimous consent to mortgage.

3. Unanimous consent on major decisions.

Solution: The Cotenancy Agreements

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COMMUNITY PROPERTY

California is one of 8 community property states in the nation.

Originated in Mexican law. Husband and wife are like partners. Property acquired during marriage by the

labor or skill of one of them belongs to both. They are equal partners.

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Domestic Partnerships

Two adults of the same sex registered as domestic partners with the Secretary of State.

Seniors of the opposite sex. The Family Law Code says domestic

partners shall have “the same rights, protections, and benefits, and shall be subject to the same responsibilities, obligations, and duties” and traditional spouses that are married.

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Management & Control

Before 1977, the husband had management and control over the community property.

Since 1977, both spouses have generally had equal rights over the community property.

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Separate Property Any property owned before marriage or

acquired by one spouse during marriage by gift or inheritance is considered separate property.

The law presumes that any property not held before marriage or acquired during marriage by gift or inheritance is community property.

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Division of Community Property Dissolution of Marriage Death Secretive Transfers

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COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP July 2001, California created a new form of

property ownership between spouses called community property with right of survivorship.

To create this new form of ownership, the spouses must sign a deed that includes the words “community property with right of survivorship.”

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OTHER FORMS OF JOINT OWNERSHIP General Partnerships Limited Partnership Joint Venture Corporations Subchapter-S Corporation Limited Liability Company Syndications Real Estate Investment Trusts

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Condominiums

Cooperatives Common Interest Developments

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REAL ESTATE SYNDICATIONS Nature of Syndications Regulations for Syndicators Regulated by the Department of Corporations Recession for Unregistered Securities California Regulation

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Typical Syndication Process Public and Private Syndication Tie Up the Property Prepare a Private Placement Memorandum Obtain Securities Exemption or Qualification Find Investors & Execute Subscription

Agreements Form the LLC or LP Obtain Financing & Assign Deposit Receipt Close Escrow

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