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Taking Title to Real Property | Real Estate Exam Prep Videos - YouTube
Channel: The Real Estate Classroom
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hey everybody my name is Paul fat Chesky
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and welcome to the real estate classroom
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YouTube channel and if you haven't
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noticed this channel is dedicated to do
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one thing and that is help you pass your
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real estate licensing exam now the topic
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of today's video is how does one take
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title or what we call hold title to real
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property and remember title means
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ownership in real estate so how does one
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take ownership in real estate all right
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so let's get started here the first
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thing I want to do is give you the
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50,000 foot view and we've already
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talked about a lot of this in previous
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videos but I want to do a recap so
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there's this term called a freehold
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estate now a freehold estate simply
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means ownership somebody has ownership
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in a piece of real property now a
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freehold estate is broken down into two
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areas all right the first one is what we
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call fee-simple or sometimes called fee
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simple absolute and the second one is a
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called a life estate now I did a
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previous video on life estates what they
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are and what you need to know for your
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licensing exam if you would like to view
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that go ahead and upper right-hand
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corner of your screen there is a little
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I click on that that's a link to the
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life estate video alright the other one
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is fee simple now fee simple means
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absolute ownership all right and this is
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broken into two areas as well there's
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several t now several T's simply means
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single ownership hope I put sign up
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there I met single si ng le single
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ownership the other one is what we call
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a concurrent estate
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concurrent estate now there are three
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subcategories of concurrent estates that
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you need to know this is where we get
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into how we take title to real property
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the first one is called joint tenancy
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the other one is called tenants in
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common and then we have community
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property now community property is not
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is not available in all 50 states so
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there is a chance that you may live in a
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state where compute community property
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is not recognized so let's talk about
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the basics of all three and then we're
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gonna run through an exercise and I'll
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kind of help you illustrate what I'm
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talking about here so joint tenancy the
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first one now joint tenancy is typically
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reserved for not reserved I should say
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it's typically implemented by married
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couples because it does offer some some
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protections for the joint tenant now one
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requirement is there has to be two or
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more people to qualify all right two or
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more people there is no willing of
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interest no bequeath meant no
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bequeathment the other party has
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corporations no corporations
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S corporations and those type of things
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so one of the joint tenants cannot be a
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corporation and the reason is is under
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the law legally a corporation never dies
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alright the other one it's what we call
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with rights of survivorship and this
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means that when when a husband and wife
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own a property for example in joint
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tenancy what rights of survivorship and
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the husband dies the husband's legal
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interests or ownership in the property
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automatically reverts to the surviving
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tenant which in this case is the wife
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and we're gonna talk more about that in
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a minute all right now there's four key
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things also that you have to understand
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this is very important for the real
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estate licensing exam all right title
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time
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interest can you think of the last one
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title time interest and possession and
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what we mean it-- by that is unity so
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that means the married couple the
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husband and wife they have had to have
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taken title or taken taken title
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possession time and interest at the same
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time and think about this it makes sense
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so if a husband and wife or a married
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couple it doesn't have to be a husband
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and wife that's just the most common it
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could be two brothers or a family of
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four or whatever however but here's what
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happens think about it so a husband and
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wife they buy a piece of property and
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they go to closing and they sign all the
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documents at the closing table they have
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acquired title possession time and
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interest in unity all at the same time
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one of the things that I get a question
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about all the time is you have a single
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person let's say that Tom purchase a
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property purchase a property and it's
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he's a single person
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he owns or holds title to that piece of
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property in severalty
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but what happens if he gets married five
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years down the road well they can't they
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can't use or they can't claim joint
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tenancy what rides a survivorship
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because they don't have unity in these
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four items you have to know these for
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the real estate licensing exam all right
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that's joint tenancy the other one is
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what we call tenants in common now just
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like joint tenancy you have to have two
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or more persons all right two or more
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people there will be there will be
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undivided interest undivided interest
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under joint tenancy the interest has to
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be equal fifty-fifty for two people or
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if there's three people one-third
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one-third one-third there cannot be an
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undivided interest with joint tenancy
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with tenants in common we can have
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undivided interest one person can own
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eighty percent the other one can own
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twenty all right you can have
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corporations
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and you can bequeath you can bequeath
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your interest as a tenant as a tenant in
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common to one of one of your errors or
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your estate all right very important
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here two or more people undivided
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interest corporations can be an owner
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and bequeathment is their and then the
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last one is what we call community
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property now community property is
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reserved only for married couples and
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what it basically says is is the they
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protecting the spouse of the deceased
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person but it's only reserved for
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married people and it's reserved to the
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assets that were accumulated during the
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time of marriage so maybe you have a
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second marriage and the husband and the
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wife they have they have you know
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basically accumulated assets from
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because you know previous marriages and
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whatnot then they get married well
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during that time of marriage anything
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that it was acquired by that married
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couple during the time of marriage
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belongs to the the surviving spouse
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however all this the assets that were
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accumulated before marriage will be
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willed off or given off to heirs or be
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part of the estate so community property
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is only there for married couples all
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right so let's run through some fun
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scenarios to kind of illustrate what we
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mean here okay let's say there is a
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house at one two three main street and
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there are two parties that purchase this
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and they purchase it with rights of
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survivorship so joint tenancy now
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remember what joint tenancy rights a
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survivor whoever the surviving person is
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gets the interest of the other so in
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this case we got Tom and we got Sally
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all right
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so notice then it's 50/50 ownership we
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remember one of the requirements under
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joint tenancy is equal ownership there
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to be an equal interest now if Tom dies
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then Tom's 50% reverts to Sally who now
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owns a hundred percent interest and when
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when we have a hundred percent and it's
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one person we call that severalty all
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right so that's the first scenario so
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let's add a joint tenant so let's say
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that there's Tom there Sally and then
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there Sarah so we have Tom Sally and
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Sarah now they pitched in their money to
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buy this house at one two three main
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street and it's joint tenancy with
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rights of survivorship okay so that
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means that they all own one-third or
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thirty three percent that is their
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ownership interest and again I'm gonna
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keep beating this dead horse if it's
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joint tenancy you cannot have an
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undivided ownership interest in they
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have to be equal
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all right so Tom decides that he doesn't
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like Sarah he doesn't like the whatever
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the living arrangement so Tom sells the
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property to Tim now one of the things
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you have to know about joint tenancy is
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any one of the joint tenants can sell
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their their interest off all right so in
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this case Tim or Tom sells to Tim now
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Tim owns one third Sally owns one third
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and Sarah owns one third but the
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relationship has changed Sally and Sarah
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still have joint tenancies all right
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they still have joint tenancy but tom is
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tenants in common so the relationship
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between Sally and Sarah and I'm sorry in
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Tim is tenants in common so if Tim dies
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he can will his his portion off to his
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errors however joint tenancy still
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exists between Sally and Sarah so let's
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say that Sarah dies well then her
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interest reverts over to Sally who now
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owns two-thirds and Tim owns one third
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and the relationship now is called
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tenants and
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common alright so that is a scenario
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that you might have so let's run one
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more here
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alright I wanted to run through one more
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scenario here just to make sure that you
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understand how this works here so we
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have 1 2 3 Main Street that was bought
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by Tim saris Ellie and Bob and remember
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the four elements a joint tenancy what
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rights a survivorship a unity and time
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title possession and interest alright so
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they have one quarter interest or 25
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percent interest in one two three Main
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Street now Tim dies
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Tim's one quarter percent will revert
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equally to the three remaining joint
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tenants so now Sarah owns one-third
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Sally
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owns one-third and Bob owns one-third
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all right so Sarah dies her one-third
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reverts to the remaining joint tenants
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so Sally now owns one-half and Bob owns
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one-half joint tenancy still exists so
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then Sally dies and her half and her
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half reverts to the remaining joint
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tenant Bob so Bob now owns a hundred
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percent and when you own a hundred
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percent by yourself that is called
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severalty ownership that's how this
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progression would work so okay if you
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want to continue on with study videos
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click on this video right here if you
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have not subscribed hit the little
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circle to my left I would appreciate
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that
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alright that's all I got for this video
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I will see you in two
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Mauro's video
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