Michael Lee

This talk is about REAL PROPERTY OWNERSHIP.
It will cover the following topics.
Sole Ownership - Individual or Business Entity
Co-Ownership:
Community Property
Joint Tenants
Tenants-in-Common

SOLE OWNERSHIP
SINGLE INDIVIDUAL OR SINGLE BUSINESS ENTITY
Distinguishing Features
Single Owner
Simplest Structure
If an individual, must consider transfer on death of divorce
Special Rules for Individuals
Divorce: If purchase after the marriage it is presumed it was purchased with community funds and thus part of community property for divorce
Probate: If title shows ‘sole & separate’ the property is deemed separate property for intestacy purposes

CO–OWNERSHIP, COMMUNITY PROPERTY
Spouses or registered domestic partners property acquisitions post marriage / domestic partnership.
Unlike Tenants-in-Common, neither party may unilaterally transfer or encumber community property interest alone.
Parties may ‘transmute’ their community property to separate property interests.
Each party has complete testamentary rights (thus can Will property to whoever he/she wishes).

CO–OWNERSHIP, JOINT TENANTS
Joint Tenants: two or more persons acquire property in equal shares by the same conveyance and at the same time, with identical possessory rights, pursuant to an instrument of transfer that expressly declares the co-ownership to be a joint tenancy.
Survivorship: upon any joint tenant’s death, her interest passes by operation of law to the surviving joint tenant.
Severance: JT may end by agreement of parties, written declaration or conveyance with or without other Joint Tenants consent. 
• Risks:
• Partition 
• Creditors

CO–OWNERSHIP TENANTS-IN-COMMON
All co-ownerships that are not joint, community, or partnership; however, many persons explicitly select Tenants-in-Common.
Tenants-in-Common own separate legal title to their undivided interests.
Not subject to survivorship and no requirement of equal interests.
All Tenants-in-Common free to sell, transfer, encumber, devise, bequeath interest.
Risks:
Creditors
Probate
Partition

Co-Ownership Agreement
SOME ISSUES OF CO-OWNERSHIP CAN BE SOLVED WITH A CO-OWNERSHIP AGREEMENT
Not a partnership agreement and cannot be deemed a partnership per California Code.. of the land.
Written Agreement that specifies the parties agreements with regard to rights of ownership
Memorandum of Agreement is often recorded to prevent bona fide purchasers or lenders and other encumbrances.
Issues Addressed:
Right to transfer
Right to encumber
Control & Management
Termination of Relationship, Sale of Property
Dispute Resolution 

Business Entity Solutions - GENERAL PARTNERSHIP
“an association of two or more persons to carry on as co-owners a business for profit”
“association of two or more persons to carry on as co-owners a business for profit forms a partnership, whether or not the persons intend to form a partnership”
Partners are deemed agents of each other. Therefore, each partner acting within the scope of partnership business binds the other partners. 
Unlimited personal liability for all partners.
BUSINESS ENTITY SOLUTIONS LIMITED PARTNERSHIP / LIMITED LIABILITY COMPANY
Registered Business Structures
Each generally has an LP or LLC agreement plus sophisticated default rules in California Code.
Can designate general partner or managing member wherein liability is contained – passive investors only risk value of the investment not personal assets.
Requires tax reporting and filing of tax returns.

Estate Planning
REVOCABLE LIVING TRUST DO YOU NEED ONE
A Trust is an arrangement where one person, “Settlor” provides property to another (or him or herself), as “Trustee,” who holds legal title to the property for another person, “Beneficiary.”
Settlor, Trustee and Beneficiary can the the same person(s).
Purpose: Avoid Probate, Streamline Distribution and Management, Avoid Contests and Provide Privacy


PROBATE， A LEGAL PROCESS
Probate is when the court supervises the processes that transfer legal title of property from the estate of the person who has died to his or her beneficiaries.
Small Estate: $150,000 and Less (Personal and Real Properties)
Positive and Negative Aspects 



WILL， HOW CAN IT BE EFFECTIVE
A Legal Document which Gives Interaction to be Carried Out After Death
Elements: Beneficiaries, Guardians for Minor Children, Executor to Administer the Estate
Requires Probate Administration 
Types: Holographic, Statutory Form, Witnessed Will 

INTESTATE SUCCESSION IF YOU DO NOT PLAN AHEAD...
The Myth
Four Major Categories: Issue (Children), Spouse, Parents, Siblings
Community Property and Separate Property
Full Probate Process

HOME IMPROVEMENT
PREVENTION
AN OUNCE OF PREVENTION IS WORTH A POUND OF CURE
Hire Licensed Contractors: Experience, Bond
Run Background Check: License, Reputation, Court Records
Obtain Workers’ Compensation Insurance
Sign Home Improvement Contract: Payment Schedule, Subcontractor, Materials Supplier etc.
Write Joint Checks
File the Notice of Completion

RESOLUTION CONFLICT IS INEVITABLE
Write a Demand Letter
File a Complaint with the Licensing Board: Mediation, Investigation,Arbitration
File a Complaint with the Small Claims Court: Affordable Costs, $10,000 Limit, Fast
File a Complaint with the Superior Court: Balance Test, Statute of Limitations