EAGLESTAR.NET LAND AND PROPERTY REVIEW
http://www.eaglestar.net
Issue #34
September 15, 2008

IN THIS ISSUE:
Properties of the Week: Illinois
Real Estate Roundup: Concurrent Tenancies
Sponsor's Corner:
- Panther Valley Ranch, Hot Springs, AR
Buyers List Update
Auction News: MO, MI, AL, OK, and KY
LandTerms.com Term of the Week: Riverbed

"People who get through life dependent on other people's possessions are always
the first to lecture you on how little possessions count." - from 'Stark'
(1989)
- Ben Elton (English comedian and writer, b. 1959)

PROPERTIES OF THE WEEK: Illinois
McLeansboro, Hamilton County, Illinois
140+/- acres with 7,600+/- square foot custom home and 6,000+/- square feet of
custom buildings. Property has 12-acre lake, includes all furnishings and
electronics. Listing ID: 20847. Photos and additional information at
http://www.eaglestar.net/crch7.html.

Davis, Winnebago County, Illinois
85+/- acres of rolling hills with lake views and walkable woods only 1.5 hours
from Chicago O'Hare Airport. Great development or estate property. Listing
ID: 20740. Photos and details at http://www.eaglestar.net/sped2-.html.

Heyworth, McLean County, Illinois
Two homes on 13+/- acres with 1 acre stocked pond, 2 wells, and 2 driveways; 3
bedroom ranch-style plus smaller rental home. Leave as is or develop with
third home. Listing ID: 19758. Photos and contact information at
http://www.eaglestar.net/fri.html.

This week marks the debut of an occasional email supplement to the Land and
Property Review called "Hot New Properties and Auctions". Watch for it in your
inbox on Thursday!


REAL ESTATE ROUNDUP
CONCURRENT TENANCIES: OWNERSHIP OF REAL PROPERTY BY TWO OR MORE PEOPLE
In this issue we continue our series on title, estates, tenancies, and transfer
of ownership to real estate with a discussion of concurrent tenancies, or
ownership of real estate by two or more people. Previous articles and FAQ's in
this series can be found at http://www.eaglestar.net/newsletter. Use the links
on the right to navigate to the issues of your choice. Title FAQ's appeared in
Issues 14, 15, and 16; Estates in Real Property were covered in Issue 18;
Leases and Leasehold estates were discussed in Issues 20, 21, 23, 24, and 25;
and Tenancy in Severalty (sole ownership) appeared in Issue 32.

Why Do Tenancies Matter?
It is extremely important to know what your rights are as an owner of real
estate, especially if property you own is co-owned with others. The manner in
which the title to real estate is vested is in many cases arguably more
important than the ownership itself. All owners of real property should be
aware not only of their rights, but also the responsibilities, limitations, and
liabilities that come with ownership. The need to be aware of these issues
increases as the type of interest one holds in real estate becomes more complex
- as when property is owned simultaneously by more than one person. This
discussion begins with a quick refresher on the subject of tenancies before
going into more detail about the two main ways that legal interest in
non-marital property can be held by more than one person: tenancy in common and
joint tenancy.

What Is a Tenancy?
The terms "tenancy" or "tenancies" refer to the different ways of holding or
taking title to real estate. In some cases, the terms tenancy or tenancies
refer to the type of interest in real property held by one who leases that
property, as in "tenancy for years" (see Issue 20). In others, "tenancies"
refers to ownership of real property vested in one or more persons. Real
property may be owned by one person, known as tenancy in severalty (see Issue
32), or it may be simultaneously owned by more than one person, which is called
a concurrent tenancy. The primary types of concurrent tenancies are joint
tenancy, tenancy in common, community property, and tenancy by the entirety.
Of these, only the first two exist in all states in the U.S; the latter two
have to do with the way ownership is vested in marital property. This week's
discussion will focus on joint tenancy and tenancy in common, with tenancies
reserved for married couples to be featured in the next issue.

Tenancy in Common
A tenancy in common may be held by any two or more parties, although married
couples generally do not own marital property in this way. Parties to a
tenancy in common are known as concurrent owners, co-owners, or tenants in
common. In this form of real property ownership, co-owners hold a separate
undivided fractional interest, which does not have to be equally distributed
among all parties. Tenants in common may own any fractional interest, such as
one-third, one-half, or even a 99% interest. This fraction refers only to the
portion of legal interest owned by a tenant in common, not to a fractional
ownership of the physical property itself. The term "undivided" means that the
co-owned real property is not itself physically divided among the tenants in
common. All parties to a tenancy in common have an equal right to possess the
entire property, a legal concept known as "unity of possession".

Creation of a Tenancy in Common
A tenancy in common is created by a deed or other document that conveys title
to real property to all concurrent owners. The document may state that a
tenancy in common is being created, or it may simply list the names of those to
whom the property is being conveyed. If the type of tenancy is not explicitly
stated on the deed to property that is being conveyed to more than one person,
it is generally presumed to be a tenancy in common. One exception is title to
real property acquired by a married couple - if no tenancy is specified, then
the type of ownership depends on state law. Some states assume the property to
be community property, while others assume a tenancy by the entirety or joint
tenancy. When creating a tenancy in common, it is not necessary to state on
the deed the fraction of property interest owned by each party. However, if no
fractional interest is specified, it is usually assumed that each tenant in
common holds an equal interest (four tenants in common = 25% each, 10 tenants
in common = 10% each, and so on).

Termination of a Tenancy in Common
The fractional ownership interest held by a tenant in common is considered sole
and separate property and may be freely conveyed with or without the permission
of the co-owners. Like any such interest, it may be sold, given away, or
willed to another. A tenant in common can only transfer the interest he holds,
not ownership of the entire piece of real property.

Joint Tenancy
Joint tenancy may be held by any two or more parties, including married
couples. These parties are known as co-owners or joint tenants. Like a
tenancy in common, the interest held by each joint tenant is undivided.
However, joint tenants own equal rather than fractional shares of the tenancy.
Joint tenancies usually include the right of survivorship (ROS), which means
that upon the death of one concurrent owner, the interest held by that party
passes to the remaining co-owners. This passage of legal interest is
automatic, and is unaffected by the contents of a will or the existence of
heirs. When all other joint tenants are deceased, the last surviving co-owner
takes title in severalty, meaning that she is now the sole owner of the
property. At this point, the sole owner, like any owner of property in
severalty, has the right to will the property to her heirs or to dispose of it
in any other legal way.

Creation of a Joint Tenancy
Historically, a joint tenancy always included the right of survivorship.
However, some states now recognize this right only if it is expressly stated in
the deed or other document used to create the joint tenancy. The deed or other
document must also contain phrases identifying the joint tenancy and joint
tenants as such; this type of mutual ownership cannot be implied. If the deed
does not state that a joint tenancy is being created and who the joint tenants
are, then the joint tenancy does not legally exist. Since the intent to create
a joint tenancy must be explicitly stated, it follows that this form of
ownership cannot be created automatically by operation of law, such as a court
order, judgment, or intestate succession.

The "Four Unities"
A distinguishing characteristic of a joint tenancy is that in order for it to
be legally created, the "Four Unities" must exist. These requirements describe
the legal concept of simultaneously uniting the interests of all co-owners into
a single tenancy. The first unity is "Time" - all joint tenants must acquire
title at the same time. The second unity is "Title" - all joint tenants must
acquire title by the same document, and the document must list all joint
tenants' names. The third unity is "Interest" - all joint tenants hold an
equal, undivided interest in the property. The fourth unity is "Possession" -
all joint tenants have an equal and undivided right to possess and use the
property. All four unities are satisfied if the joint tenancy is created by a
single document (or group of documents) conveying equal interest and undivided
possession to all joint tenants, and this document or group of documents is
signed and delivered at one time.

Termination of a Joint Tenancy
A person who owns real property as a joint tenant has the right to convey that
property to another. However, such an act violates the unities of joint
tenancy, specifically those of time and title. Therefore, the new owner cannot
be a joint tenant; he holds his interest as a tenant in common with the
remaining co-owners. For example, Bob holds interest in a rental home as joint
tenants with Amy and Sally. Bob sells his interest to Steve. Steve now owns a
one-third share in the property as a tenant in common with Amy and Sally, who
remain joint tenants with each other, with each owning an undivided share of
the remaining two-thirds interest in the home. If Bob sold only half his
interest to Steve instead of the whole thing, the ownership interests would be
distributed thusly: Steve would own a one-sixth share as tenants in common with
Bob, Amy, and Sally, who would own the remaining five-sixths interest in the
property as joint tenants with each other. In either example, Steve's interest
as a tenant in common may be conveyed to another party, who would also be a
tenant in common with the remaining owners.

Partioning
If a party to a joint tenancy wishes to terminate her interest in the property,
but the other parties do not agree, then a court of law must determine how to
equitably split the property between co-owners, usually through an action known
as a "partition suit". The court will generally try to physically partition or
divide the property, giving each co-owner an equal portion. Many times,
however, this is not possible without diminishing or destroying the property's
value. In such cases, the court can order the property sold, with the proceeds
evenly distributed among the joint tenants.

Summing It Up
Both tenancies in common and joint tenancies are forms of real estate ownership
by more than one person. To create a joint tenancy, the intent to do so must
be explicitly stated, and the four unities must exist. This is not necessary
for a tenancy in common to be created; in fact, failure to specify the type of
concurrent ownership on a deed generally results in a presumed tenancy in
common. Possession is the only unity necessary for a tenancy in common.

Tenants in common hold an undivided fractional interest in the co-owned
property, while the interest held by joint tenants is undivided and equal.
Shares in a tenancy in common may be freely conveyed without changing the
relationship among tenants. Such an act effectively terminates the original
tenancy in common and creates another. In contrast, the recipient of a share
of a joint tenancy becomes a tenant in common with the remaining co-owners,
because the four unities of the original joint tenancy no longer exist. If a
joint tenant wishes to terminate the tenancy but the other parties do not
agree, a partition suit may be necessary to equitably split the property or the
proceeds from its sale.

A joint tenancy is much different than a tenancy in common and both can be
quite complicated, in part because they involve combining one interest in real
property with the interests of others. Consultation with an attorney to create
co-ownership of real property is always advised. Doing so is a proactive step
toward protecting your rights, as well as ensuring that you understand the
nature of the obligations, liabilities, and relationships inherent in a
concurrent tenancy.


SPONSOR'S CORNER
The Land and Property Review would like to thank this week's sponsor, Panther
Valley Ranch.
Scenic Arkansas Guest Ranch For Sale
Hot Springs, Garland County, Arkansas
Listing ID: 20437
Panther Valley Ranch is an 82+/- acre guest ranch in the scenic Ouachita
Mountains and has been operated by its current owners since 1990. Located only
5 miles from Hot Springs National Park, the ranch was homesteaded in 1902 and
has been featured in Southern Living magazine. The 9 suites, 8 with hot tubs,
offer the best of rustic elegance. All suites have king beds with fine linens,
a fireplace or wood burning stove, satellite TV and DVD player, kitchen or
kitchenette with cooking utensils, and gas grill on the porch. The property
features a year-round, creek-fed lake, a 22-stall stable, and a 14-stall hay
barn. The sale includes a 1000-seat amphitheater with dressing room and
separate office, a maintenance barn and shop, and 9 gelding quarter horses,
saddles, and tack. This streamlined, turn-key facility is currently in
operation and includes everything you need to start booking guests right away.
View photos, additional details, and contact information at
http://www.eaglestar.net/bptst.html.


BUYERS LIST UPDATE
Find the properties you are looking for by placing unlimited free buyer's ads
on Eaglestar.net. This service is intended for serious inquiries only. It's
fast, easy, and best of all, free. Navigate to
http://www.eaglestar.net/pages/buyers.html to begin.

Brokers, Agents, and Salespersons:
Eaglestar.net buyer's listings offer an additional way to find the properties
your clients are seeking. It takes only minutes, and it's free. Place
unlimited free buyer's listings at http://www.eaglestar.net/pages/buyers.html,
or email them to info@eaglestar.net and we'll put them on the site for you.

Wanted: 1+ acre in Owasso, Oklahoma area. May consider more land depending on
price. Licensed Realtor in Oklahoma. Please refer to buyer #21094.

Wanted: California beachfront, oceanfront, or oceanview condo anywhere between
San Diego and Sacramento. Please refer to buyer #21095.

Looking in: Logan County, Kentucky within 30 minutes of South Union. Land or
land with home to rear our 3 little boys. Any size okay, want creek or stream
or nearby. Please refer to buyer #21055.

20 acres wanted in Golden Valley, Arizona. Please refer to buyer #20954.

Looking in: Virgil, South Dakota area. 80-520 acres For Hunting. Please refer
to listing ID #17229.

Wanted: 50+ acres in upstate New York. Please refer to buyer #17235.

Looking in: remote areas of California. The Retirement Conservancy Trust is
looking to acquire liquidation-priced vacant land in remote areas of California
- particularly 29 Palms, Joshua Tree, Yucca Valley, and Landers. Please refer
to buyer #20903.

More "Real Estate Wanted" listings are available at
http://www.eaglestar.net/Land_Buyers_List/index.html.


AUCTION NEWS - http://www.eaglestar.net/Land_Auction_Calendar/index.html
The following auctions are scheduled for September:

TUES., SEPT. 16 THROUGH FRI., SEPT. 19, 2008
MISSOURI: Franklin County
Lots in Woodland Lakes Development, Sullivan, Missouri
Online auction starts tomorrow! Multiple lots for sale in one of Missouri's
best recreational developments. Listing ID: 21114. View photo, directions,
and additional information at http://www.eaglestar.net/Detailed/21114.html.

MONDAY, SEPTEMBER 22, 2008
MICHIGAN: Barry County
Lakefront Cedar Log Home - Middleville, Michigan
Newly-remodeled cedar log lake retreat on Payne Lake, close to Yankee Springs
and Gun Lake. One-third acre (+/-) lot has 100+/- feet of lake frontage. Log
home has all the amenities. Listing ID: 21106. Details at
http://www.eaglestar.net/Detailed/21106.html.

THURSDAY, SEPTEMBER 25, 2008
ALABAMA: Talladega County
13 Waterfront and Waterview Lots in Lincoln, Alabama
Absolute auction, 13 Lake Logan Martin lots within the established Indian
Springs subdivision, plus 25+/- acre commercial/mixed use tract in Talladega,
AL. Listing ID: 21107. More information at
http://www.eaglestar.net/Detailed/21107.html.

OKLAHOMA: Delaware County
2 Grand Lake Area Homes, Grove, Oklahoma
Cozy 2 bedroom, 1 bath home on 0.5+/- acres and charming 4+ bedroom 3 bath,
country cottage on 4.5+/- acres with 200+/- feet of waterfront, both just off
Grand Lake’s Honey Creek. Listing ID: 21108. Photos and details at
http://www.eaglestar.net/Detailed/21108.html.

OKLAHOMA: Osage County
2 Lakeview Lots, Skiatook Lake, Oklahoma
Two 1+/- acre lakeview lots overlooking Tall Chief Cove. Panoramic views of
Skiatook Lake and hills of Osage County. Wooded lots, gentle rolling terrain
and road frontage. Listing ID: 21112. Photo and contact information at
http://www.eaglestar.net/Detailed/21112.html.

OKLAHOMA: Ottawa County
Former General Store Converted to 3 Bedroom Home, Wyandotte, OK
Historic property on Main Street, built in early 1900's sits on 5 lots. Home
currently has 3 bedrooms and 1 1/2 baths. Renovations highlight the many
original features. Listing ID: 21119. More information at
http://www.eaglestar.net/Detailed/21119.html.

OKLAHOMA: Tulsa County
2 Commercial Lots, Sand Springs, Oklahoma
Commercial investment opportunity, 2 lots on heavily traveled Hwy 97 and Shell
Creek Road north of Sand Springs, OK. Access to utilities and road frontage.
Listing ID: 21109. Photos and additional information at
http://www.eaglestar.net/Detailed/21109.html.

Residential Raw Land, Sand Springs, Oklahoma
17 residential lots in Pond Creek I and II subdivision, located off Shell Creek
Road, plus three parcels in the rolling hills of Osage County. Lots with
woods, vistas and rolling terrain. Listing ID: 21111. Details at
http://www.eaglestar.net/Detailed/21111.html.

Absolute Auction, 3 Parcels and 2 Homes, Bixby, Oklahoma
3 bedroom, 3.5 bath home on 3.2+/- acres; 1+ bedroom, 1 1/4 bath home on 2.2+/-
acres; and four-bay commercial-size garage on 2.2+/- acres. Two Toyota
vehicles for sale. Listing ID: 21113. Photos and more information at
http://www.eaglestar.net/Detailed/21113.html.

SATURDAY, SEPTEMBER 27, 2008
KENTUCKY: Russell County
Absolute Auction, 8 Tracts Farm Land, Russell Springs, Kentucky
8 parcels, 111+/- total acres. Close to town, mostly flat and gently rolling
fertile farm land. Some parcels overlook Caney Creek Gorge. Listing ID:
21081. Photos and contact information are available at
http://www.eaglestar.net/Detailed/21081.html.

If you would like to see more auction listings including previews of October
auctions, check out the new occasional supplement to the Land and Property
Review, called "Hot New Properties and Auctions". We'll email the premiere
edition to you on Thursday of this week.


LANDTERMS.COM TERM OF THE WEEK
http://landterms.com
Each issue we feature a real estate, forestry, natural sciences or other
land-related term from our partner site, LandTerms.com.

This week's term: Riverbed
The semi-impermeable and impermeable layers located at the bottom of a river or
stream channel; the bottom of a river channel, often of bedrock, beneath which
water does not penetrate or penetrates extremely slowly.

Browse all categories of real estate, natural resources, and other land-related
terms at http://landterms.com/categories.html.


SUGGESTIONS
We welcome reader suggestions, comments, and questions.
Email: newsletter@eaglestar.net

ARCHIVES
See archived issues of the Eaglestar.net Land and Property Review at
http://eaglestar.net/newsletter.

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