4. REAL ESTATE OWNERSHIP

When a person owns real estate they are said to hold an interest in the property. The degree to which a person holds that interest is known as their estate in the land. Not all interests are estates, however, to be an estate the interest must allow possession at some time and be for a specified period of time. There are two main types of estates.

Freehold estate last for an indeterminable length of time, such as a lifetime or forever.

Leasehold estate last for a fixed period of time.

There are two main types of real estate ownership, ownership in severalty and co-ownership.

Severalty property is owned by one individual

Co-ownership property is owned by two or more parties. There are four types.

o Tenancy in common parties own an undivided interest in the property. Both owners possess the property, but the ownership is divided. When a person dies, their interest is passed along according to their will.

o Joint tenancy similar to tenancy in common except when an individual dies their interest is divided among the remaining joint tenants

o Tenancy by the entirety used by some states for married couples. Both parties have equal interest in the property.

o Community property married couples only have equal interest in real estate purchased after the marriage. All other property is considered separate.