Legal Issues: Property Ownership

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Legal Issues Property Ownership
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Property Ownership

• Two major or key points
• 1. Degree of ownership interest.
• 2. Relationship between the co-owners if more
  than one owner exists.

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Types of Property

• Real Property land, buildings, mineral rights,
  etc.
• Personal Property
• Tangible machinery, equipment, autos,
  household items, grain, livestock, etc.
• Intangible bank accounts, stock, bonds, life
  insurance, etc.

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Ownership of Real Property

• Fee Simple or Fee Simple Absolute
• Life Estate and Remainder Interest
• Sole Ownership
• Co-ownership
• Tenancy-in-Common
• Joint Tenancy
• Tenancy by the Entirety

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Fee Simple Ownership

• All rights of ownership.
• Sell, give away, lease, use, etc. in any manner
  the owner or owners choose.

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Life Estate and Remainder Interests

• Holders share property interests with
  remaindermen.
• Life tenant manages and receives income from the
  property during their lifetime. They cannot
  dispose of the property or mortgage it without
  consent of the remaindermen.
• The terms and provisions of a Life Estate can
  vary greatly depending upon the purpose for which
  it was created.

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Sole Ownership

• Only one name appears on the title or deed.
• Owner has all rights to sell, give away,
  mortgage, etc.
• Property will pass to heir or heirs by will,
  trust, or law of descent if neither of the prior
  items exist.

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Co-Ownership of Property

• Tenancy-in-Common
• Joint Tenancy with Right of Survivorship
• Tenancy by the Entirety

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Tenancy in Common

• Usually created when someone dies without a will
  (intestate).
• Owners have an undivided interest in the
  property.
• May cause problems when one or more of the owners
  want to sell their share.
• Can be messy when more than one generation is
  involved.

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Joint Tenancy With Rights of Survivorship

• Most common type of co-ownership.
• Will has no effect on the transfer of this
  property.
• Surviving joint tenant(s) receives all.
• May risk disinheriting children should surviving
  spouse remarry.
• Property is at risk of being included in legal
  action involving one joint tenant being sued.

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Tenancy by the Entirety

• Same concept as Joint Tenancy ownership.
• Restricted to husband and wife only.
• Cannot be severed without consent of both
  parties.
• At death, all property transfers to the survivor.

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Homework Assignment

• Determine how your property is owned.
• Land and Home Abstracts, Deeds, etc. (Records
  from County clerks office)
• Farm and Non-farm vehicles Titles
• Bank accounts Signature cards
• Investments Stock Certificates, Brokerage
  Accounts, etc.

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ExampleList of Property and Ownership

• Property Description
• Smith Quarter
• Home
• Inherited Wal-Mart Stock

• Ownership Type
• Tenants in Common
• (Husband and his Brother)
• Joint Tenants with Rights of Survivorship (JTWRS)
• Sole ownership Stock in your name only