Owning an Undivided interest in Real Estate and patented mining claims

In real estate, an undivided interest refers to a co-ownership scenario whereby each owner owns a percentage share in the property. It occurs in situations where a piece of real property is held by two or more persons without being subdivided or divided among the owners. There is no limit as to how many owners there may be nor is there any minimum or maximum percentage a party may own.

When you think of owning real estate, you probably think of owning the whole thing with a complete (100%) interest. That is, the land has just one owner, and the process of buying, selling, and making decisions is relatively uncomplicated. Yet, it’s more common than people think to have multiple owners for one piece of land. For instance, related or unrelated business partners, heirs of land, or a married couple can all hold land together. All of these relationships create a scenario where you may have more than one owner of a property, and co-ownership can quickly become complicated.

WHAT IS UNDIVIDED INTEREST IN REAL ESTATE? In real estate, an undivided interest refers to a co-ownership scenario whereby each owner owns a percentage share in the property. It occurs in situations where a piece of real property is held by two or more persons without being subdivided or divided among the owners. Thus, the land itself is a single undivided parcel and every owner has an equal right to enjoy the entire property. However, despite having an equal right to enjoy the property, each owner only owns a percentage share in the property.

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