Apart from finding the best properties or having the money to use for investment, it will also be important to make sure that you will be aware of the different forms of real estate ownership which typically spreads depending on the number of owners or on the types of property.
Property ownership is important because it will determine the legal rights and responsibilities of the owner. It will affect its transferability, inheritability, and even bankruptcy. In order to provide a better view of the thought, here are some of the different types of ownership that you should know:
1. Ownership in severalty: It is the type of real estate owned by one person or legal entity. In this kind of ownership, one has complete control of the land and can freely choose to put it on sale, have it leased, give as a gift, or pass to heirs without necessarily asking for another person's permission.
2. Co-owned real estate properties: This is the kind of ownership wherein two or more persons have legal rights over a property. There are several classes that fall under this type and here are some to name a few:
3. Tenancy in common: concurrent owners have a fractional interest in a particular property and it is usually divided in equal shares. In this type of ownership, all owners are listed in the title and even the amount of their ownership will be included especially when the property is not divided equally.
4. Joint Tenancy: This is almost similar with tenancy in common but the difference is the undivided interest among the joint contracts especially with its rights of survivorship wherein use of property is allowed but no single co-owner can sell a piece of the land without the consent of the other tenants.
5. Tenancy by the inheritance: is somehow similar with joint tenancy but this time, there is an undivided interests among tenants and the owners will only be limited in two persons and must be married
It is important to know the different types of real estate properties because of the effects that it can create on the people involved in the long run. Definitely, real estate can become a good form of investment especially if you will take the time to know its ins and outs. Real estate ownership matters and for sure, even if the need is not yet apparent, there will be enough reasons to know your rights as well as the limitations of your ownership.