Ownership Structure Besides deciding whether to purchase a new or established property, buyers also need to decide on the ownership structure of their property. As we are all unique individuals, there are different ownership structures that can be beneficial for different people. The structure you choose will be dependent on your own individual circumstances. The most common ownership structures include the following: Individual Ownership, as the name implies, means that the property is owned by a single person. With this ownership structure, proper estate planning is essential and a will needs to be drawn up with clear instructions on asset distribution to avoid intestacy rules, which can have a devastating effect for surviving family members and loved ones. From an investment point of view, the owner will reap all the tax benefits; this is especially useful for high-income earners to lower their taxes through negative gearing when purchasing an investment property. However, you must consider that the single owner will also be subjected to higher capital gains tax if the investment property is sold while earning that high income. Joint Tenants simply means that you’re married or in a de-facto relationship with the person with whom you are buying the property. When you purchase in this structure, if one of the married couple passes away, the other half of the property would automatically be transferred to the surviving partner. This is the most common ownership structure
Martin is a joint tenant with a right of survivorship with his friends Peter, John, and Thomas. All of them have passed away, and Martin has not been back to the property in more than 20 years. Consequently, Peter indicated in his will that he was leaving his interest in the property to his son Andrew. Andrew has taken a personal loan out and used his part of the interest in the property as collateral. The lender has initiated a legal action to foreclose on the property. Unfortunately, this type of property co-ownership is known as joint tenancy with rights of survivorship and the portion of the interest that is now owned by Andrew, in fact, can be attached by creditors. Andrew’s father, Peter, left his share of
Shaw communications equity structure is comprised of series A shares and series B shares. Series B shares trade on the Toronto Stock Exchange, and 50% of these shares are owned by the top 25 shareholders. 40% of the shares are owned by financial institutions as part of their investment portfolios. Only 12% of the shares are owned by insiders, i.e. Shaw family and/or executives. Since these shares don’t have voting options, their ownership is mainly for capital gain and dividend purposes. On the other hand, series A shares have an embedded voting option, and 78% of the shares are owned by the Shaw family within the Shaw Family Living Trust (SFLT1). Therefore, Shaw family has total control of the company’s decisions. This increases the overall risk to the firm as ordinary shareholders have no say over the operations of the firm. The main implication is agency risk, as no one can exercise a final vote but the Shaw family. Company decisions could be biased towards Shaw family’s interest, and not in the best interest of other shareholders. Bad signals could make investors to withdraw their investments from the company, and Shaw’s market capitalization would plummet. The dual class structure and the current ownership structure increases the operating risk, and hence the required rate of return for equity. As a consequence the WACC of the firm is deemed to increase.
Tenants by the entirety is a form of holding property that is specific to married couples. True
The first case shows that Martin had bought the mountain property 31 years ago as the joint tenant with his friends. The friends of Martin is passed away already and he had not been in the property for more than 20 years. The actions taken by Martin clearly indicates that he was not careful about the property and other people used it for their own purpose. The law shows that “Placing property in joint tenancy may disinherit children or others since property held in joint tenancy passes to the survivor regardless of what the deceased joint tenant's Will or Trust directs and regardless of whom the decedent's heirs are under law. Usually it is a person’s intent to leave their property to their spouse and then to their children.
Joint tenancy is dealing with a home ownership where each party is on the home and also has an equal interest within the property. Tenancy in common is where you have an ownership of a property by 2 individuals with no right of survivorship. They are to be co-owners and their shares are equal.
Sectional title means that you are owner a unit in a common property, weather its an apartment, partially detached house, mini subtype home or a flat. So, you are sole owner of your living unit but you also have the right to use certain common parts of property that are co-owned by all the sectional title owners in this community, such as yard, pool, washing room etc.
In 1979 Lorne Michaels founded Broadway Video Entertainment, Inc. in New York City. Lorne Michaels started in the entertainment business as the creator of Saturday Night Live being hired by NBC to replace the reruns that would be airing on Saturday nights. Besides for a five year gap from 1980-1985 Michaels has been Saturday Night Live’s executive producer for the entire time that she show has been on air (Lorne Michaels). Broadway video is an entertainment and media company that works to produce and distribute different prime time and late night comedic content. Lorne Michaels is the founder and executive producer while Jack Sullivan is the Chief Executive Officer (Bloomberg.com).
Location, Date: A cross between buying and renting, shared ownership has been the preferred to own properties especially for millennials who seek easy and affordable investment schemes in real estate. There is a share of the property that the new buyer owns and pay rent for the remaining area that does not come under the bought section at much cheaper rates. Eventually, the new buyers can buy-out the entire property with improved financial status.
In Canadian real estate there are three major types of ownership - freehold, co-operative and condominimum. Each of them has its own advantages and disadvantages. The owner of each type is responsible for maintaining the property and following the bylaws.
However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from the real property, referring to ownership rights over real
Don't purchase an investment property based only on tax laws alone. Tax codes are constantly changing, so it is important that there is more value to your property as opposed to just the lower taxes. Invest in a property because you see it turning a good profit even years from now when the taxes may increase.
Anytime you start up a business or you take over another company there are multiple things you must do to get started. One of the major things one must do is decide on what type of ownership you want. There are many different types of business ownerships out there, but some will benefit you more than others. In this paper you will be learning about the difference two types of business ownerships you can have. The main point of the paper is to help someone that’s going to become an owner of a business be able to do what’s best for not only them, but also what will be best for the business. Sole trader ship and partnership are the two best ownership because they will benefit the owner and business more by going by what the company stands for.
studies1 are unnecessarily restrictive and misspecified. The model that is presented here captures further nonlinearities in this relationship at high levels of managerial holdings and has a quintic specification.
All these members of the board of directors were selected by the shareholders of the company in annual general meeting of “Sukhoi Company” on June 28, in
‘Modelling the Value-Adding Attributes of Real Estate to the Wealth Maximization of the Firm.’ This paper was authored by Anna-Liisa Lindholm (Helsinki University of Technology, Finland), Karen M. Gibler (Georgia State University, Atlanta, GA) and Kari I. Leväinen (Helsinki University of Technology, Finland). It was published in December, 2009 in the Journal of Real Estate Society Vol. 28 by the American Publisher.