Filing of bankruptcy requires the filer to list the real properties he/she owns or possesses. This is done to assess the seriousness of bankruptcy and various other financial aspects to resolve the issue in the best possible manner. The ownership or interest has to be disclosed in legal language which can often be tough. To learn more about world-class attorneys and some interesting bankruptcy and related topics, do check out Recovery Law Group. Owning, possessing, having an interest, etc., are different terms associated with property ownership. There can be different ways of holding a property. The most common ways can be listed as follows-
- Fee Simple
Fee simple is a common ownership form that entitles you outright ownership rights like selling, transferring, altering, etc. Even if there is a home mortgage for a home and you have full right to sell, transfer to your future family or make alterations to it, the property ownership shall be regarded as fee simple. A fee simple type of ownership might be owned by several people or tenants jointly.
- Life Estate
A Life Estate is basically an asset which can be used or held only during the lifetime of an individual. Basically, such an asset is exhausted with the death of the user and cannot be transferred to his/her heirs. Such an asset cannot be sold or given away too. The asset shall be passed on to another person or institution as per the Will or agreement that brought you the life estate asset. This is common amongst surviving spouses who receive assets from trusts after the death of the other spouse.
- Future Interest
A future interest as the name suggests is a kind of benefit or an asset that is available in some time during the future. This is usually seen in case of young individuals whose parents, set up an irrevocable trust which yields assets only after a specific tenure or eligibility is attained. However, it is important to note that a promise made in a will or any such instrument that can be altered or modified later is not regarded as a future interest.
- Contingent Interest
Contingent interest is also a future interest which has certain terms and conditions attached to it. There is an addition of some tasks or clauses that need to be accomplished in order to ascertain the asset or the benefit on offer. For instance, Jack sets aside a future interest of asset worth $10,000 if Brian marries before the age of 27 years. In this scenario, if Brian marries before age 27, he gets $10,000. If he plans to remain single, he loses the $10,000. Both Jack and Brian in this scenario are holding a contingent interest.
Details to be disclosed
While doing the paperwork related to bankruptcy, it is important to list some important information alongside the real property interest held. Some important details that should make way can be listed as follows-
- Address and type of property
- Describing the interest in property whether it is a spouse or any other family member
- The fair market value of the property
- The kind of ownership
Some other terms to learn with real property
It is always good to know some smart and commonly used legal terms. Some of them relating to real property can be listed as follows-
- Lien Holder
Lien holder is a person who can exercise right on a property if the debtor defaults and fails to make payments consistently over a period of time. This is usually listed out in a mortgage agreement, judgment lien, or a trust deed. This is also a real property interest and should be disclosed.
- Easement Holder
Easement Holder is basically a type of right that gives you power or authority to use the property along with another institution or an individual who is the owner of the property. This also has to make way to the official documents of bankruptcy.
- Power of Appointment
If you have the right to transfer, sell or represent on behalf of someone else for a particular property or an asset as per a will or an agreement, it is referred to as the power of appointment. This also has to be reported while filing for bankruptcy.
- Beneficial Interest
This type of interest is commonly seen in real estate transactions. There is a binding real estate agreement granting ownership. This gives ownership to the buyer after completing all the sale formalities. For instance, you might still own a beneficial interest for an escrow pending property.
These are some of the not so easy things digest and interpret. There are many aspects that get far more complicated and technical. To help resolve your queries better and address your problems, our team of professional, skilled and experienced attorneys in California is just a phone call away. Dial 888-297-6203 right now!