Page 18 - Homeowners Manual - San Mateo County

4� Tenancy in Common: A form of vesting title to property owned by any two or more individuals in undivided
fractional interests� These fractional interests may be unequal in quantity or duration and may arise at dif-
ferent times� Each tenant in common owns a share of the property, is entitled to a comparable portion of the
income from the property and must bear an equivalent share of expenses� Each co-tenant may sell, lease or
will to his/her heir that share of the property belonging to him/her� For example: Bruce Buyer, a single man,
as to an undivided 3/4 interest and Penny Purchaser, a single woman, as to an undivided 1/4 interest.

Other Ways of Vesting Title include as:

1� A Corporation*: A corporation is a legal entity, created under state law, consisting of one or more
shareholders but regarded under law as having an existence and personality separate from such
shareholders�

2� A Partnership*: A partnership is an association of two or more persons who can carry on business for
profit as co-owners, as governed by the Uniform Partnership Act� A partnership may hold title to real
property in the name of the partnership�

3� Trustees of a Trust*: A Trust is an arrangement whereby legal title to property is transferred by the grantor
to a person called a trustee, to be held and managed by that person for the benefit of the people specified
in the trust agreement, called the beneficiaries� A trust is generally not an entity that can hold title in its own
name� Instead title is often vested in the trustee of the trust� For example: Bruce Buyer trustee of the Buyer
Family Trust�

4� Limited Liability Companies (LLC)*: This form of ownership is a legal entity and is similar to both the
corporation and the partnership� The operating agreement will determine how the LLC functions and is
taxed� Like the corporation its existence is separate from its owners�

*In cases of corporate, partnership, LLC or trust ownership - required documents may include corporate articles
and bylaws, partnership agreements, LLC operating agreements and trust agreements and/or certificates�

Reprinted with permission from clta�org�

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