For any investor, understanding the different types of relationships in the field of real estate is crucial. Whether you want to invest in a new property or become a landlord, it’s important to know all about these relationships so that you can make decisions for your needs. Learn about what happens when you buy property and more by reading this article!
What is reliction in Real Estate
Reliction is the act of transferring the ownership of property to someone else. When you sell your share of property, it’s called reliction. If you and your friend purchase a house together and then sell your shares to each other, that is considered reliction. To make sure everything runs smoothly when selling the property, every person must agree on who will pay for what (i.e. closing costs). If you both don’t work it out before the actual sale, the individual who is moving out will usually have to sell the share of the property they own and then move.
Joint Tenancy
Joint tenancy is one of the most common types of ownership in real estate, and it’s when two or more people own the property. For example, if you are purchasing a house with three friends, each person will have their name on the deed to the property. When one owner sells his or her share in the property, he or she gets back all of their investment plus the profit that was made during that time. That individual then has to take care of finding someone to buy their share before they move out.
Tenancy in Common
Tenant in common is another type of relationship in real estate. This happens when two or more people own a property, but the ownership is not shared equally. For example, if you and your friend decide to buy a house together on a 50/50 basis, there will be two names on the deed. If only one person remains as the owner after selling their share, he or she will have to take care of finding someone to buy that person’s share before they move out.
Fee Simple
Finally, fee simple is a third type of real estate relationship where a person owns a property outright. There are no shares involved and the person is not responsible for finding someone to buy their share before they move out. For example, if you have enough money to purchase a condo on your own and it is not divided into parts or share holders, you will be the sole owner of that property with no one else’s name on the title deed. There is also no time limit to how long the property can be owned by one person; he or she can pass down ownership to his or her relatives as inheritance.
Life Estate
Life estate is when someone has the right to possess, use, and enjoy all or part of a property for the remainder of his or her life. This type of ownership carries with it responsibility for paying taxes on the property. Life estate can be given in two ways: “fee simple” and “ieat-interest”.
Lien on Real Property
A lien on real property is a type of security that is used to ensure the person who holds it will be repaid for a loan or service. For real estate, a lien is given as a way to guarantee the purchase of the property. If there is a dispute about this type of lien, then a judge will have to rule on whether or not the money you were owed can be held until the dispute is settled.
Conclusion
If you’re thinking about investing in real estate for the first time, it’s important to do your research and learn all of these types of relationships so that you can make an informed decision. Whether you want to be a landlord or investor, there are many different ways people own property — each type has its pros and cons. If any of this sounds confusing, don’t worry! Our team is here to help answer any questions you have about how best to invest in property by considering what will work best with your needs. We’ll also show you some examples from our past clients who were able to find success when they did their homework before investing in new properties. Let us know if we can help–we look forward hearing from you soon!
