1 Chapter 4
CHAPTER 4: Forms of Ownership
I. Discuss Sole Ownership
II. Define and discuss the elements of Tenancy in
Common
A. Words of Conveyance
B. No Right of Survivorship
C. Co-owner Responsibilities
D. “What ifs”
III. Discuss Joint Tenancy
A. Define the Four Unities
B. Discuss the importance of Right of
Survivorship
C. “Poor Man’s Will”
IV. Discuss Tenancy by the Entirety
A. Advantages and Disadvantages
B. Effect of Divorce
V. Discuss Community Property in your state, if
applicable
A. Separate Property
B. Philosophy
VI. Caveat to Agents
VII. Define Partnership, discuss the differences
among the following
A. General Partnership
B. Limited Partnership
C. Joint Venture
VIII. Discuss Corporations as real estate owners
A. S Corporations
B. Tax benefit examples
IX. Discuss the theory of ownership by trusts
A. Inter vivos and Testamentary Trusts
B. Land Trusts
C. Real Estate Investment Trusts
X. Limited Liability Companies
XI. Syndication
This chapter will look at how a given right or interest
in land is held by one or more individuals. It covers
such topics as sole ownership, tenants in common,
joint tenancy, tenancy by the entirety, and community
property.
Show how this is defined as severalty — this
confuses a lot of students!
Discuss this as the presumption, if applicable in
your state, or the lack thereof.
Discuss death, divorce, and insanity as
primary problems for heirs.
Emphasize the historical significance of
community property.
Tell them: “Don’t give legal advice.” This is a
good place
to start this emphasis in the
Does your state recognize limited liability
partnerships?
Emphasize: Is corporate ownership of real
estate (in perpetuity) a good idea? Does your
state have any prohibitions? What about tax
considerations?
Discuss liability of trustees slowly, as this is
confusing to most students. Give examples of
perpetuation of assets through trusts and
applicability of the land trust theory in your
Chapter 4 2
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55 53 Opening Remarks Start this chapter by stressing that ALL property is held either in
severalty or in concurrence. That is, all property is owned by just
one person or it is owned by more than one person.
Concurrent ownership includes Tenants in Common, Joint
Tenancy, or Tenancy by the Entirety.
56 54 Tenants in Common Summary:
1. No Right of Survivorship. Title passes to the heirs or devisees of
the deceased.
2. There can be unequal ownership.
3. The ownership is undivided.
4. The right to partition exists.
57 55 Joint Tenancy Stress: Right of Survivorship: Title passes to the co-owner(s) of
the deceased. Also, the right to partition exists.
57 55 Four Unities Four Unities (PITT)
Possession: Ownership is undivided.
Interest: There must be equal ownership.
Title: Ownership was acquired from the same source.
Time: Each joint tenant’s ownership was acquired at the
same time.
58 56 Right of Survivorship Stress: Then an owner dies, his ownership interest passes to
surviving co-owner(s).
60 57 Tenancy by the Summary: Adds additional Unity of Person to the four unities of
Entirety Joint Tenancy.
1. Available only to two people who are married to one another.
2. Right of Survivorship.
3. The right to partition exists.
4. Four Unities (PITT)
Possession: Ownership is undivided.
Interest: There must be equal ownership.
Title: Ownership was acquired from the same source.
Time: Each joint tenant’s ownership was acquired at
the same time.
60 59 Community Property Local Distinction: Does your state recognize community property?
Why or why not? Give example of community and separate
property to help class understand this concept.
3 Chapter 4
Page Ref.
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62 – General Partnership Stress: Each partner of a general partnership is fully liable for its
liabilities.
Local Distinction: Has your state adopted the concept of limited
liability partnership?
62 – Limited Partnership Common Misconception: Students tend to forget that a limited
partnership must have at least one general partner who assumes
full liability for the partnership.
Some states have adopted the Revised Uniform Limited
Partnership Act. Check your state for the differences.
64 — Trusts Local Distinction: Is anyone in class involved in a trust?
66 — Limited Liability Local Distinction: The laws providing for the existence of a
Companies Limited Liability Company are new. All states have adopted this
concept. After discussion, does the class see advantages,
disadvantages?
67 72 Wrap-Up 1. Distinguish sole ownership from concurrent ownership.
(Sole is individual, in severalty; Concurrent is more than one
at the same time, in common or joint tenancy.)
2. Name the key characteristics of Tenants in Common.
(No Survivorship, Unequal Ownership, Undivided Possession)
3. Name the key characteristics of point Tenancy. (Survivorship,
Four Unities of Possession, Interest, Time and Title-PITT)
4. Name the key characteristics of Tenancy by the Entireties.
(Unity of person in addition to an the ones listed as answers
for question 3.)