Property Ownership
This chapter covers the foundational concepts of what real property is, the rights that come with ownership, and the ways title can be held. Understanding estates, the bundle of rights, and forms of co-ownership is essential before analyzing any transaction. These national concepts apply broadly, though Colorado adds its own rules, and notably Colorado is not a community property state.
Real Property and the Bundle of Rights
Real property consists of land, everything permanently attached to it, and the legal rights that come with ownership. These rights are often called the bundle of rights: possession, control, enjoyment, exclusion, and disposition. Rights can be separated and sold individually, such as conveying mineral or air rights while keeping the surface. Personal property is movable and does not transfer with the deed unless the contract says so, which is why fixtures are frequently disputed.
Estates in Land
A freehold estate lasts an indefinite time and includes fee simple absolute, the most complete ownership, and life estates that end at a person's death. A leasehold estate gives possession for a set time without ownership of the land. Ownership is always subject to government powers such as taxation, eminent domain, police power, and escheat. Recognizing the estate helps determine what an owner can actually transfer.
Forms of Co-Ownership
Two or more people may hold title as joint tenants with right of survivorship or as tenants in common. Joint tenancy passes the deceased owner's share automatically to surviving joint tenants, while tenancy in common allows each share to pass by will. Because Colorado is not a community property state, married couples typically use joint tenancy or tenancy in common. The chosen form affects inheritance, creditor claims, and the ability to sell a share.